ABC Ltd uses a perpetual inventory system. The company policy states that the unit cost of inventory
Question:
ABC Ltd uses a perpetual inventory system. The company policy states that "the unit cost of inventory is assigned using the weighted average cost method as per AASB 102 Inventories".
a) During the month of April 2021, the company had the following transactions for Material A. Prepare a raw material inventory card using the method for inventory costing as per company policy.
1 April Opening Balance 50 units @ $8.00
2 April Purchases 60 units @ $8.50
3 April Issues 80 units
4 April Purchases 75 units @ $9.00
5 April Issues 50 units
b) Show the journal entry necessary to charge the raw material issued to the production process.
c) With reference to AASB102 Inventories, what other systems or methods may be used to assign costs to inventories?
NOTE: Use the inventory cards and blank General Journal extracts on the following page for your answer.
Weighted Average (for the part a)
Date | Received | Issued | Total | ||||||
Qty | Unit $ | Total | Qty | Unit $ | Total | Qty | Unit $ | Total | |
General Journal (for the part b)
Debit | Credit | ||
Expert Answer:
Weighted Average Method Raw Material Card for Material A Date Received Issued Total Quantity Unit To... View the full answer
