1. 2. 3. QUESTION 4 Raw materials... Packaging materials Work in progress. Finished goods. Additional information: 4. A manufacturing entity, Aboo Ltd, provides the following information of purchases and payments with regards to inventory for the year ended 30 June 2022: Raw material purchases..... Transport costs - raw materials Fixed production overhead costs incurred Variable production overhead costs incurred. Items of inventories were determined as follows: Opening inventories R 192 500 9 600 61 875 220 000 REQUIRED: Closing inventories R 82 500 8 800 140 250 112 750 R 495 000 1 400 228 250 276 380 Net realisable value R 59 813 7 970 110 000 100 000 Raw materials and work in progress are valued according to the first in, first out (FIFO) method. Assume raw materials, work in progress and finished goods used in production will not be sold or expected to be sold at or above cost. Finished goods and consumables are valued using the weighted average method. Fixed production overhead costs are allocated at R100 per unit and is based on the normal production capacity of 2 000 units. The entity utilises the perpetual inventory system. Prepare inventory journal entries of Aboo Ltd for the financial year ended 30 June 2022 to comply with the IAS 2 standard of the International Financial Reporting Standards (IFRS).
1. 2. 3. QUESTION 4 Raw materials... Packaging materials Work in progress. Finished goods. Additional information: 4. A manufacturing entity, Aboo Ltd, provides the following information of purchases and payments with regards to inventory for the year ended 30 June 2022: Raw material purchases..... Transport costs - raw materials Fixed production overhead costs incurred Variable production overhead costs incurred. Items of inventories were determined as follows: Opening inventories R 192 500 9 600 61 875 220 000 REQUIRED: Closing inventories R 82 500 8 800 140 250 112 750 R 495 000 1 400 228 250 276 380 Net realisable value R 59 813 7 970 110 000 100 000 Raw materials and work in progress are valued according to the first in, first out (FIFO) method. Assume raw materials, work in progress and finished goods used in production will not be sold or expected to be sold at or above cost. Finished goods and consumables are valued using the weighted average method. Fixed production overhead costs are allocated at R100 per unit and is based on the normal production capacity of 2 000 units. The entity utilises the perpetual inventory system. Prepare inventory journal entries of Aboo Ltd for the financial year ended 30 June 2022 to comply with the IAS 2 standard of the International Financial Reporting Standards (IFRS).
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:1.
2.
3.
QUESTION 4
Raw materials..
Packaging materials.
Work in progress
Finished goods.
Additional information:
4.
A manufacturing entity, Aboo Ltd, provides the following information of purchases and payments with
regards to inventory for the year ended 30 June 2022:
Raw material purchases.
Transport costs - raw materials
Fixed production overhead costs incurred
Variable production overhead costs incurred
Items of inventories were determined as follows:
Opening
inventories
R
192 500
9 600
61 875
220 000
REQUIRED:
Closing
inventories
R
82 500
8 800
140 250
112 750
R
495 000
1 400
228 250
276 380
Net
realisable
value
R
59 813
7 970
110 000
100 000
Raw materials and work in progress are valued according to the first in, first out (FIFO) method.
Assume raw materials, work in progress and finished goods used in production will not be sold or
expected to be sold at or above cost.
Finished goods and consumables are valued using the weighted average method.
Fixed production overhead costs are allocated at R100 per unit and is based on the normal
production capacity of 2 000 units.
The entity utilises the perpetual inventory system.
Prepare inventory journal entries of Aboo Ltd for the financial year ended 30 June 2022 to comply with
the IAS 2 standard of the International Financial Reporting Standards (IFRS).
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