QUESTION $2$

$(20$ MARKS$)$

$2\mathrm{.}1$ REQUIRED

Use the information given below to calculate the value of issues to the production department for May $2025$ and the value of closing inventory as at $31$ May $2025$ using the following methods of inventory valuation:

$2\mathrm{.}1\mathrm{.}1$ First$-$in$-$first$-$out

$(6$ marks$)$

$2\mathrm{.}1\mathrm{.}2$ Weighted average cost. $($Express the weighted average cost per unit in rands and cents.$)$

$(6$ marks$)$

INFORMATION

The following information for May $2025$ was extracted from the records of Kramer Limited, a manufacturing company that uses the periodic inventory system, for an inventory item that it uses in production:

$\backslash$table$[[$Date$,$Transaction details$],[01,$Opening inventory: $4000$ units at R$10$ each$],[04,$Purchased $36000$ units at R$11$ each.$],[15,$Purchased $50000$ units at R$13$ each.$],[25,$Received an invoice for $10000$ units at R$15$ each.$],[31,$Transferred $85000$ units to the production department during May $2025]]$