REQUIRED Marks

INDEPENDENT PART A

(a) Calculate the value of inventory of fabric on 31 August 2023 for

Mzanzi-fashion (Pty) Ltd as requested by the management

accountant.

Note: Round off the inventory value per unit to 2 decimal places.

(b) If you had a manufacturing company that manufactures cars, which

inventory valuation system would you use to value inventory? Also

motivate why.

QUESTION 1 (30 MARK8) (36 MINUTES) INDEPENDENT PART A You have been presented with information by the management accountant of Mzanztfashlon (Pty) Ltd ("Mzanzi-fashion"), a company that manufactures dresses. Mzanzifashion uses fabric to manufacture its dresses. The management accountant has computed the value of fabric on 31 August 2023. The inventory value of fabric has been calculated as follows using the First-in-first-out (FIFO) valuation method: Additional information: The management accountant also used the following in calculating the inventory value of fabric: Date Transaction 3 Purchased material. 8 Issued material to production. 12 Purchased material. 17 Retumed units purchased on the 3rd and was not yet issued to production. 30 Issued material to production. The management accountant has requested to be informed what the value of inventory of fabric would be on 31 August 2023, if the Weighted average method of inventory valuation is used. Assume the details of opening inventory on 1 August 2023 would be the same as for the FIFO method