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:

2.1.1 First-in-first-out (5 marks)

2.1.2 Last-in-first-out (5 marks)

2.1.3 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:

\begin{tabular}{|c|l|} \hline Date & Transaction details \\ \hline & Opening inventory: \\ \hline 01 & 3000 units at R17 each \\ \hline & Purchased from a supplier: \\ \hline 03 & 46000 units at R18 each \\ \hline 16 & 37000 units at R19 each \\ \hline 23 & 15000 units at R20 each \\ \hline & Returned to the supplier: \\ \hline 04 & 1000 damaged units (purchased 03 May) \\ \hline & Transferred to the production department: \\ \hline & 80000 units during May 2023 \\ \hline \end{tabular}