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A manufacturing entity, Marty Ltd provides the following information of purchases and payments with regards to inventory for the year ended 31 December 2022: Opening Inventories - 1 January 2022 Raw Materials Packaging materials Work in progress Finished goods The following production cost incurred during the year is as follows: Raw material purchases.. Transport costs - raw materials. Fixed production overhead costs incurred Variable production overhead costs incurred. Closing stock - 31 December 2022 R 200 000 10 500 75 000 350 000 R 585 000 2 400 350 000 295 000 Raw materials. Packaging materials. Work in progress. Finished goods. Closing inventories R Net realisable value R 120 000 60 000 7 600 5 800 180 000 150 000 235 000 100 000 Additional information: 1. 2. Raw materials and work in progress are valued according to the first in, first out (FIFO) method. Assume raw materials, wip 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. 3. Fixed production overhead costs are allocated at R150 per unit and is based on the normal production capacity of 1 800 units. 4. The entity utilises the perpetual inventory system. REQUIRED: Prepare inventory journal entries of Marty Ltd for the financial year ended 31 December 2022 to comply with the IAS 2 standard of the International Financial Reporting Standards (IFRS).

A manufacturing entity, Marty Ltd provides the following information of purchases and payments with regards to inventory for the year ended 31 December 2022: Opening Inventories - 1 January 2022 Raw Materials Packaging materials Work in progress Finished goods The following production cost incurred during the year is as follows: Raw material purchases.. Transport costs - raw materials. Fixed production overhead costs incurred Variable production overhead costs incurred. Closing stock - 31 December 2022 R 200 000 10 500 75 000 350 000 R 585 000 2 400 350 000 295 000 Raw materials. Packaging materials. Work in progress. Finished goods. Closing inventories R Net realisable value R 120 000 60 000 7 600 5 800 180 000 150 000 235 000 100 000 Additional information: 1. 2. Raw materials and work in progress are valued according to the first in, first out (FIFO) method. Assume raw materials, wip 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. 3. Fixed production overhead costs are allocated at R150 per unit and is based on the normal production capacity of 1 800 units. 4. The entity utilises the perpetual inventory system. REQUIRED: Prepare inventory journal entries of Marty Ltd for the financial year ended 31 December 2022 to comply with the IAS 2 standard of the International Financial Reporting Standards (IFRS).

College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter27: Adjustments, Financial Statements, And Year-end Accounting For A Manufacturing business
Section: Chapter Questions
Problem 1MP: Reese Manufacturing Company manufactures and sells a limited line of products made to customer...
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A manufacturing entity, Marty Ltd provides the following information of purchases and payments with regards to inventory for the year ended 31 December 2022: Opening Inventories - 1 January 2022 Raw Materials Packaging materials Work in progress Finished goods The following production cost incurred during the year is as follows: Raw material purchases.. Transport costs - raw materials. Fixed production overhead costs incurred Variable production overhead costs incurred. Closing stock - 31 December 2022 R 200 000 10 500 75 000 350 000 R 585 000 2 400 350 000 295 000 Raw materials. Packaging materials. Work in progress. Finished goods. Closing inventories R Net realisable value R 120 000 60 000 7 600 5 800 180 000 150 000 235 000 100 000 Additional information: 1. 2. Raw materials and work in progress are valued according to the first in, first out (FIFO) method. Assume raw materials, wip 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. 3. Fixed production overhead costs are allocated at R150 per unit and is based on the normal production capacity of 1 800 units. 4. The entity utilises the perpetual inventory system. REQUIRED: Prepare inventory journal entries of Marty Ltd for the financial year ended 31 December 2022 to comply with the IAS 2 standard of the International Financial Reporting Standards (IFRS).
Transcribed Image Text:A manufacturing entity, Marty Ltd provides the following information of purchases and payments with regards to inventory for the year ended 31 December 2022: Opening Inventories - 1 January 2022 Raw Materials Packaging materials Work in progress Finished goods The following production cost incurred during the year is as follows: Raw material purchases.. Transport costs - raw materials. Fixed production overhead costs incurred Variable production overhead costs incurred. Closing stock - 31 December 2022 R 200 000 10 500 75 000 350 000 R 585 000 2 400 350 000 295 000 Raw materials. Packaging materials. Work in progress. Finished goods. Closing inventories R Net realisable value R 120 000 60 000 7 600 5 800 180 000 150 000 235 000 100 000 Additional information: 1. 2. Raw materials and work in progress are valued according to the first in, first out (FIFO) method. Assume raw materials, wip 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. 3. Fixed production overhead costs are allocated at R150 per unit and is based on the normal production capacity of 1 800 units. 4. The entity utilises the perpetual inventory system. REQUIRED: Prepare inventory journal entries of Marty Ltd for the financial year ended 31 December 2022 to comply with the IAS 2 standard of the International Financial Reporting Standards (IFRS).
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