QUESTION $2$

$(20$ MARKS$)$

$2\mathrm{.}1$

REQUIRED

Use the information given below to calculate the net value of issues to production for May $2023$ and value of

closing inventory as at $31$ May $2023$ using the following methods of inventory valuation:

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

$(5$ marks$)$

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

$(5$ marks$)$

$2\mathrm{.}1\mathrm{.}3$ Weighted average cost. $($Express the average cost per unit in rands and cents.$)$

$(5$ marks$)$

INFORMATION

The following information for May $2023$ was extracted from the records of Kens Limited, a manufacturing

company, for a component used in production:

Date Transaction details

Opening inventory:

$01$

$3000$ units at R$17$ each

Purchased from a supplier:

$03$

$46000$ units at R$18$ each

$16$

$37000$ units at R$19$ each

$23$

$15000$ units at R$20$ each

Returned to the supplier:

$04$

$1000$ damaged units $($purchased $03$ May$)$

Transferred to the production department:

$80000$ units during May $2023$

$2\mathrm{.}2$