Question
2.1 Use the information given below to calculate the value of closing inventory as at 31 May 2022 and the value of issues to production
2.1 Use the information given below to calculate the value of closing inventory as at 31 May 2022 and the value of issues to production for May 2022 using the following methods of inventory valuation:
2.1.2 First-in-first-out (FIFO)
INFORMATION
The following transactions of Mascor Manufacturers, which uses the periodic inventory system, took place during May 2022 in respect of a component used in production:
date. transaction 1. Opening in inventory 300 units @ R20. per unit
14. purchased from supplier 1000 units for R22 000
18. returned to supplier (bought 14 may) 500 units
26 Purchased from supplier 200 units @ R24 per unit
31. issued to production in may 700 units
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Accounting What the Numbers Mean
Authors: David H. Marshall, Wayne W. McManus, Daniel F. Viele
10th edition
9780077515904, 007802529X, 77515900, 978-0078025297
