Miramax bookshop buys and sells textbooks and other stationery. The compary uses a perpetual inventory system. You have been provided with the following information for May 2016: Date Description MAY 15t 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 returned 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 31st Stocktaking Required: Calculate the value of closing inventory for May 2016 for Miramax 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.

FINANCIAL ACCOUNTING
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Author:Libby
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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
Description
MAY 15 Opening balance was 2 000 textbooks with a total value of R300 000
6h Issued 800 textbooks
10th Purchased 1 000 textbooks @R160 each
14h Issued 900 textbooks
16h Returned 100 textbooks purchased on the 10th of May to the supplier
19th Customers returned 150 textbooks issued on the 14h of May
20 1000 textbooks were ordered @ R170each
22nd Issued 1000 textbooks
26h Received the textbooks ordered on the 20h
31s Stocktaking
Required:
Calculate the value of closing inventory for May 2016 for Miramax bookshop using the weighted average method of
inventory valuation. Note: round off all TOTALS to the nearest R1 and all unit costs to TVWO decimal places.
Transcribed Image Text: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 Description MAY 15 Opening balance was 2 000 textbooks with a total value of R300 000 6h Issued 800 textbooks 10th Purchased 1 000 textbooks @R160 each 14h Issued 900 textbooks 16h Returned 100 textbooks purchased on the 10th of May to the supplier 19th Customers returned 150 textbooks issued on the 14h of May 20 1000 textbooks were ordered @ R170each 22nd Issued 1000 textbooks 26h Received the textbooks ordered on the 20h 31s Stocktaking Required: Calculate the value of closing inventory for May 2016 for Miramax bookshop using the weighted average method of inventory valuation. Note: round off all TOTALS to the nearest R1 and all unit costs to TVWO decimal places.
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