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1. 2. 3. QUESTION 4 Raw materials... Packaging materials Work in progress. Finished goods. Additional information: 4. A manufacturing entity, Aboo Ltd, provides the following information of purchases and payments with regards to inventory for the year ended 30 June 2022: Raw material purchases..... Transport costs - raw materials Fixed production overhead costs incurred Variable production overhead costs incurred. Items of inventories were determined as follows: Opening inventories R 192 500 9 600 61 875 220 000 REQUIRED: Closing inventories R 82 500 8 800 140 250 112 750 R 495 000 1 400 228 250 276 380 Net realisable value R 59 813 7 970 110 000 100 000 Raw materials and work in progress are valued according to the first in, first out (FIFO) method. Assume raw materials, work in progress and finished goods used in production will not be sold or expected to be sold at or above cost. Finished goods and consumables are valued using the weighted average method. Fixed production overhead costs are allocated at R100 per unit and is based on the normal production capacity of 2 000 units. The entity utilises the perpetual inventory system. Prepare inventory journal entries of Aboo Ltd for the financial year ended 30 June 2022 to comply with the IAS 2 standard of the International Financial Reporting Standards (IFRS).

1. 2. 3. QUESTION 4 Raw materials... Packaging materials Work in progress. Finished goods. Additional information: 4. A manufacturing entity, Aboo Ltd, provides the following information of purchases and payments with regards to inventory for the year ended 30 June 2022: Raw material purchases..... Transport costs - raw materials Fixed production overhead costs incurred Variable production overhead costs incurred. Items of inventories were determined as follows: Opening inventories R 192 500 9 600 61 875 220 000 REQUIRED: Closing inventories R 82 500 8 800 140 250 112 750 R 495 000 1 400 228 250 276 380 Net realisable value R 59 813 7 970 110 000 100 000 Raw materials and work in progress are valued according to the first in, first out (FIFO) method. Assume raw materials, work in progress and finished goods used in production will not be sold or expected to be sold at or above cost. Finished goods and consumables are valued using the weighted average method. Fixed production overhead costs are allocated at R100 per unit and is based on the normal production capacity of 2 000 units. The entity utilises the perpetual inventory system. Prepare inventory journal entries of Aboo Ltd for the financial year ended 30 June 2022 to comply with the IAS 2 standard of the International Financial Reporting Standards (IFRS).

Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter6: Receivables And Inventories
Section: Chapter Questions
Problem 6.12E: Qualcomm Incorporated (QCOM) is a leading developer and manufacturer of digital wireless...
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1. 2. 3. QUESTION 4 Raw materials.. Packaging materials. Work in progress Finished goods. Additional information: 4. A manufacturing entity, Aboo Ltd, provides the following information of purchases and payments with regards to inventory for the year ended 30 June 2022: Raw material purchases. Transport costs - raw materials Fixed production overhead costs incurred Variable production overhead costs incurred Items of inventories were determined as follows: Opening inventories R 192 500 9 600 61 875 220 000 REQUIRED: Closing inventories R 82 500 8 800 140 250 112 750 R 495 000 1 400 228 250 276 380 Net realisable value R 59 813 7 970 110 000 100 000 Raw materials and work in progress are valued according to the first in, first out (FIFO) method. Assume raw materials, work in progress and finished goods used in production will not be sold or expected to be sold at or above cost. Finished goods and consumables are valued using the weighted average method. Fixed production overhead costs are allocated at R100 per unit and is based on the normal production capacity of 2 000 units. The entity utilises the perpetual inventory system. Prepare inventory journal entries of Aboo Ltd for the financial year ended 30 June 2022 to comply with the IAS 2 standard of the International Financial Reporting Standards (IFRS).
Transcribed Image Text:1. 2. 3. QUESTION 4 Raw materials.. Packaging materials. Work in progress Finished goods. Additional information: 4. A manufacturing entity, Aboo Ltd, provides the following information of purchases and payments with regards to inventory for the year ended 30 June 2022: Raw material purchases. Transport costs - raw materials Fixed production overhead costs incurred Variable production overhead costs incurred Items of inventories were determined as follows: Opening inventories R 192 500 9 600 61 875 220 000 REQUIRED: Closing inventories R 82 500 8 800 140 250 112 750 R 495 000 1 400 228 250 276 380 Net realisable value R 59 813 7 970 110 000 100 000 Raw materials and work in progress are valued according to the first in, first out (FIFO) method. Assume raw materials, work in progress and finished goods used in production will not be sold or expected to be sold at or above cost. Finished goods and consumables are valued using the weighted average method. Fixed production overhead costs are allocated at R100 per unit and is based on the normal production capacity of 2 000 units. The entity utilises the perpetual inventory system. Prepare inventory journal entries of Aboo Ltd for the financial year ended 30 June 2022 to comply with the IAS 2 standard of the International Financial Reporting Standards (IFRS).
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