Gates Limited manufactures is a manufacturer of wooden furniture. The following transactions regarding the wood (ie Direct material component) that is used to make the funiture is available for the month of April 2018. 1 April 6 April Opening balance-300m of wood @ R8 per meter Purchase 500m of wood on cash from ABC suppliers 200 R7.50 per metre 12 April Issued 380m of wood to production. 15 April Factory returns 20m of the wood issued on 12 April. 16 April Purchased 350m at a total cost of R3000 from XYZ suppliers on cash 23 April Issued 700m from the store to production 28 April Returned 80m from the wood that was purchased on 16 April REQUIRED PLEASE USE THE ATTACHED INVENTORY LEDGER CARD FOR THE ANSWERS OF QUESTION a) AND c). TEAR OFF THE INVENTORY LEDGER CARD FROM YOUR QUESTION PAPER AND PLACE IT IN YOUR ANSWER BOOK WHEN HANDING IN. IT IS YOUR RESPONSIBILITY TO MAKE SURE THAT THE ATTACHMENT IS IN YOUR ANSWER BOOK WHEN HANDING IN. a) Calculate the closing inventory using the FIFO method. (hint: Draw up an inventory card) b) Draw up a Raw material control account in the ledger under FIFO. c) What would be the closing value of inventory on 16 April under the Weighted Average method?

Gates Limited manufactures is a manufacturer of wooden furniture. The following transactions regarding the wood (ie Direct material component) that is used to make the funiture is available for the month of April 2018. 1 April 6 April Opening balance-300m of wood @ R8 per meter Purchase 500m of wood on cash from ABC suppliers 200 R7.50 per metre 12 April Issued 380m of wood to production. 15 April Factory returns 20m of the wood issued on 12 April. 16 April Purchased 350m at a total cost of R3000 from XYZ suppliers on cash 23 April Issued 700m from the store to production 28 April Returned 80m from the wood that was purchased on 16 April REQUIRED PLEASE USE THE ATTACHED INVENTORY LEDGER CARD FOR THE ANSWERS OF QUESTION a) AND c). TEAR OFF THE INVENTORY LEDGER CARD FROM YOUR QUESTION PAPER AND PLACE IT IN YOUR ANSWER BOOK WHEN HANDING IN. IT IS YOUR RESPONSIBILITY TO MAKE SURE THAT THE ATTACHMENT IS IN YOUR ANSWER BOOK WHEN HANDING IN. a) Calculate the closing inventory using the FIFO method. (hint: Draw up an inventory card) b) Draw up a Raw material control account in the ledger under FIFO. c) What would be the closing value of inventory on 16 April under the Weighted Average method?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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