QUESTION 1 The following information regarding the purchases and issues to production or component J for a project of Kia Limited during April 2020 is available: Purchases April Units Total invoice price 01 13 000 R91 000 10 15 000 R120 000 20 14 000 R126 000 Issues to production April Units 05 8 000 15 9 000 25 13 000 Refer to the information provided above and answer the following questions: 1.1.1 Use the first-in-first-out (FIFO) method to complete the following table for the transactions provided below: Purchases Issues Balance Date Quantity Price Amount Quantity Price Amount Quantity Price Amount 1.1.2 Use the weighted average cost method to complete the above table for the transactions up to 15 April 2020 only. Where applicable, round off the weighted average cost per unit to the nearest cent and other amounts to the nearest Rand.
QUESTION 1 The following information regarding the purchases and issues to production or component J for a project of Kia Limited during April 2020 is available: Purchases April Units Total invoice price 01 13 000 R91 000 10 15 000 R120 000 20 14 000 R126 000 Issues to production April Units 05 8 000 15 9 000 25 13 000 Refer to the information provided above and answer the following questions: 1.1.1 Use the first-in-first-out (FIFO) method to complete the following table for the transactions provided below: Purchases Issues Balance Date Quantity Price Amount Quantity Price Amount Quantity Price Amount 1.1.2 Use the weighted average cost method to complete the above table for the transactions up to 15 April 2020 only. Where applicable, round off the weighted average cost per unit to the nearest cent and other amounts to the nearest Rand.
Chapter5: Operating Activities: Purchases And Cash Payments
Section: Chapter Questions
Problem 3.7C
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Transcribed Image Text:QUESTION 1
The following information regarding the purchases and issues to production or component
J for a project of Kia Limited during April 2020 is available:
Purchases
April
Units
Total invoice
price
01
13 000
R91 000
10
15 000
R120 000
20
14 000
R126 000
Issues to production
April
Units
05
8 000
15
9 000
25
13 000
Refer to the information provided above and answer the following questions:
1.1.1 Use the first-in-first-out (FIFO) method to complete the following table for the
transactions provided below:
Purchases
Issues
Balance
Date
Quantity Price
Amount
Quantity
Price
Amount Quantity Price
Amount
1.1.2 Use the weighted average cost method to complete the above table for the
transactions up to 15 April 2020 only. Where applicable, round off the weighted
average cost per unit to the nearest cent and other amounts to the nearest Rand.
Transcribed Image Text:1.2
Otta Wholesalers expects to sell 15 500 cases of soft drinks during 2020. The cost of placing
an order is estimated to be R40. The inventory holding cost of one case of soft drink is R4.
REQUIRED:
Calculate the economic order quantity (EOQ) of soft drinks for 2020.
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