1.1REQUIREDUse the first-in-first-out (FIFO) method to complete the table provided below for the stated transactions.INFORMATIONThe following transactions of Max Enterprises took place during August 2022 in respect of a component used inproduction:Date Transactions010715242730Opening inventoryPurchased from a supplierDateIssued to productionPurchased from a supplierReturned to the supplier (see 24")Issued to productionTable to complete:PurchasesQuantity Price180 units @ R10 per unit900 units @ R11 per unit630 units540 units @ R12 per unit100 units600 unitsIssues and returnsAmount Quantity Price Amount QuantityBalancePriceAmount

FIFO stands for first-in-first-out. It is a inventory valuation method. In this method the old good…

1.1 REQUIRED Use the first-in-first-out (FIFO) method to complete the table provided below for the stated transactions. INFORMATION The following transactions of Max Enterprises took place during August 2022 in respect of a component used in production: Date Transactions 01 07 15 24 27 30 Opening inventory Purchased from a supplier Issued to production Purchased from a supplier Returned to the supplier (see 24") Issued to production Table to complete: Purchases Date Quantity Price Amount 180 units @ R10 per unit 900 units @ R11 per unit 630 units 540 units @ R12 per unit 100 units 600 units Issues and returns Quantity Price Amount Quantity M Balance Price Amount

1.1 REQUIRED Use the first-in-first-out (FIFO) method to complete the table provided below for the stated transactions. INFORMATION The following transactions of Max Enterprises took place during August 2022 in respect of a component used in production: Date Transactions 01 07 15 24 27 30 Opening inventory Purchased from a supplier Issued to production Purchased from a supplier Returned to the supplier (see 24") Issued to production Table to complete: Purchases Date Quantity Price Amount 180 units @ R10 per unit 900 units @ R11 per unit 630 units 540 units @ R12 per unit 100 units 600 units Issues and returns Quantity Price Amount Quantity M Balance Price Amount

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Inventory Accounting

Inventory accounting is that branch of accounting that helps in determining the specific value of assets at different stages of production and development.

Question

1.1
REQUIRED
Use the first-in-first-out (FIFO) method to complete the table provided below for the stated transactions.
INFORMATION
The following transactions of Max Enterprises took place during August 2022 in respect of a component used in
production:
Date Transactions
01
07
15
24
27
30
Opening inventory
Purchased from a supplier
Date
Issued to production
Purchased from a supplier
Returned to the supplier (see 24")
Issued to production
Table to complete:
Purchases
Quantity Price
180 units @ R10 per unit
900 units @ R11 per unit
630 units
540 units @ R12 per unit
100 units
600 units
Issues and returns
Amount Quantity Price Amount Quantity
Balance
Price
Amount

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H1.
Please explain how you get the amount, quantity and unit price.
4
All information included
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