QUESTION 1 (25)

GIVEN INFORMATION The following information has been extracted the March 2020 from the records of AIDA Limited, a manufacturing company, for an inventory item:

Note: For the weighted average method round off the weighted average cost per unit to the nearest cent and all other amounts to the nearest Rand. Tables may be used as part of your workings but the answers to each of the above questions must be provided separately.

1.1 REQUIRED Use the information given below to calculate: 1.1.1 Total value of issues on 04 March 2020 using the first-in-first-out method. (2) 1.1.2 Total value of inventory as at 15 March 2020 using the first-in-first-out method. (2) 1.1.3 Total value of issues to the production department for March 2020 using the first-in-first-out method. (4) 1.1.4 Value of issues on 17 March 2020 using the weighted average method. (2) 1.1.5 Value of inventory as at 31 March 2020 using the weighted average method. (2) 1.1.6 Total value of issues to the production department for March 2020 using the weighted method. (4)

March Transaction details Opening inventory 01 2 100 units @ R16 each Purchased 02 2 900 units @ R18 each 15 4 000 units @ R19 each 22 9 000 units @ R20 each Returned to the supplier 03 1 000 damaged units (purchased 02 March) Transferred to the production department 04 3 000 units 17 5 000 units 25 6 000 units