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Pot Limited (Ltd) uses a perpetual inventory system. The company concluded the following transactions for material...

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.                

Solutions

Expert Solution

ekkarill92 answered 6 months ago
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