have been provided with the following information for May 2016: Date Description MAY 1 Opening balance was 2 000 textbooks with a total value of R300 000 6th Issued 800 textbooks 10th Purchased 1 000 textbooks @ R160 each 14th Issued 900 textbooks 16th Returned 100 textbooks purchased on the 10th of May to the supplier 19th Customers retuned 150 textbooks issued on the 14th of May 20th 1000 textbooks were ordered @ R170 each 22nd Issued 1 000 textbooks 26th Received the textbooks ordered on the 20th 31 Stocktaking Required: Calculate the value of closing inventory for May 2016 for Mramax bookshop using the weighted average method inventory valuation. Note: round off all TOTALS to the nearest R1 and all unit costs to TWO decimal places.
have been provided with the following information for May 2016: Date Description MAY 1 Opening balance was 2 000 textbooks with a total value of R300 000 6th Issued 800 textbooks 10th Purchased 1 000 textbooks @ R160 each 14th Issued 900 textbooks 16th Returned 100 textbooks purchased on the 10th of May to the supplier 19th Customers retuned 150 textbooks issued on the 14th of May 20th 1000 textbooks were ordered @ R170 each 22nd Issued 1 000 textbooks 26th Received the textbooks ordered on the 20th 31 Stocktaking Required: Calculate the value of closing inventory for May 2016 for Mramax bookshop using the weighted average method inventory valuation. Note: round off all TOTALS to the nearest R1 and all unit costs to TWO decimal places.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![QUESTION 2: INVENTORY VALUATION
Miramax bookshop buys and sells textbooks and other stationery. The company uses a perpetual inventory system. You
have been provided with the following information for May 2016:
Date
MAY 1s Opening balance was 2 000 textbooks with a total value of R300 000
6th Issued 800 textbooks
10th Purchased 1 000 textbooks @ R160 each
14th Issued 900 textbooks
16th Returned 100 textbooks purchased on the 10th of May to the supplier
Description
19th Customers retumed 150 textbooks issued on the 14th of May
20th 1000 textbooks were ordered @ R170 each
22nd Issued 1 000 textbooks
26th Received the textbooks ordered on the 20th
31s Stocktaking
Required:
Calculate the value of closing inventory for May 2016 for Mramax bookshop using the weighted average method of
inventory valuation. Note: round off all TOTALS to the nearest R1 and all unit costs to TWO decimal places.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5d066935-fb05-42ac-a3cc-8581e0fc5b07%2Fc2014279-032e-4641-9fb7-b708f0c4e152%2Fl7oksd_processed.jpeg&w=3840&q=75)
Transcribed Image Text:QUESTION 2: INVENTORY VALUATION
Miramax bookshop buys and sells textbooks and other stationery. The company uses a perpetual inventory system. You
have been provided with the following information for May 2016:
Date
MAY 1s Opening balance was 2 000 textbooks with a total value of R300 000
6th Issued 800 textbooks
10th Purchased 1 000 textbooks @ R160 each
14th Issued 900 textbooks
16th Returned 100 textbooks purchased on the 10th of May to the supplier
Description
19th Customers retumed 150 textbooks issued on the 14th of May
20th 1000 textbooks were ordered @ R170 each
22nd Issued 1 000 textbooks
26th Received the textbooks ordered on the 20th
31s Stocktaking
Required:
Calculate the value of closing inventory for May 2016 for Mramax bookshop using the weighted average method of
inventory valuation. Note: round off all TOTALS to the nearest R1 and all unit costs to TWO decimal places.
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