In: Accounting
Pot Limited (Ltd) uses a perpetual inventory system. The company concluded the following transactions for material PSR 1 during April 2018:
Date |
Information |
01 |
Opening balance of materials: 2 000 units at R 1 per unit |
03 |
Purchased 2 400 units at R 1.10 per unit |
Transport cost (to be capitalised) R 100 |
|
04 |
Issued 3 200 units to production |
06 |
Purchased 4 000 units at R 1.15 per unit |
07 |
Returned to supplier, 120 defective units (bought on 6th April) |
08 |
Issued 1 200 units to production |
09 |
Returned to stores 200 excess units (from the issue on 8th April) |
10 |
Purchased 6 000 units at R 1. 20 per unit |
15 |
Issued 3 200 units to production |
Required:
Using the FIFO method of inventory valuation, calculate the cost of material PSR1 issued to production during April 2018.