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 6^th April)
08	Issued 1 200 units to production
09	Returned to stores 200 excess units (from the issue on 8^th 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 3 months ago

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