question 2 c) Profit and loss d) None of the above Rent expense R40 800 1.2 The
ID: 2328224 • Letter: Q
Question
question 2
c) Profit and loss d) None of the above Rent expense R40 800 1.2 The following information w as extracted from the records of NWJ Traders for May 2017: 2017 Units of Cost price May inventory per unit R10 R11 R12 01 Inventory on hand 18 000 11 Purchased 50 000 22 Purchased 33 000 1 000 80 000 23 Returned to supplier R12 31 Sales for May 2017 a) b) c) d) The value of inventory on 31 May 2017, using the weighted average cost method, is R222 800 R220 000 R240 000 None of the above. 1.3 The following information was extracted from the records of Vondi's Traders on 30 June the end of the financial year: 600 000 480 000 1 476 000 36 000 3 000 000 Opening inventory Closing inventory Purchases Purchases returnsExplanation / Answer
Answer: Option A) R 222,800
The value of inventory using weighted average method =R 222,800
Explanation to the answer:
2017
Purchase and opening
Cost of goods sold
Closing
May
Unit
price
Total
Unit
price
Total
Unit
price
Total
1
18000
10
180000
18000
10
180000
11
50,000
11
550000
18000
10
180000
50,000
11
550000
68,000
10.735
730,000
22
33000
12
396000
18000
10
180000
50,000
11
550000
33000
12
396000
101,000
11.149
1,126,000
23
1000
12
12000
18000
10
180000
50,000
11
550000
32000
12
384000
100,000
11.14
1,114,000
31
80,000
11.14
891200
20,000
11.14
222800
Total
101000
1126000
81000
903200
20,000
222,800
2017
Purchase and opening
Cost of goods sold
Closing
May
Unit
price
Total
Unit
price
Total
Unit
price
Total
1
18000
10
180000
18000
10
180000
11
50,000
11
550000
18000
10
180000
50,000
11
550000
68,000
10.735
730,000
22
33000
12
396000
18000
10
180000
50,000
11
550000
33000
12
396000
101,000
11.149
1,126,000
23
1000
12
12000
18000
10
180000
50,000
11
550000
32000
12
384000
100,000
11.14
1,114,000
31
80,000
11.14
891200
20,000
11.14
222800
Total
101000
1126000
81000
903200
20,000
222,800
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