QUESTION 1The following information regarding the purchases and issues to production or componentJ for a project of Kia Limited during April 2020 is available:PurchasesAprilUnitsTotal invoiceprice0113 000R91 0001015 000R120 0002014 000R126 000Issues to productionAprilUnits058 000159 0002513 000Refer to the information provided above and answer the following questions:1.1.1 Use the first-in-first-out (FIFO) method to complete the following table for thetransactions provided below:PurchasesIssuesBalanceDateQuantity PriceAmountQuantityPriceAmount Quantity PriceAmount1.1.2 Use the weighted average cost method to complete the above table for thetransactions up to 15 April 2020 only. Where applicable, round off the weightedaverage cost per unit to the nearest cent and other amounts to the nearest Rand. 1.2Otta Wholesalers expects to sell 15 500 cases of soft drinks during 2020. The cost of placingan order is estimated to be R40. The inventory holding cost of one case of soft drink is R4.REQUIRED:Calculate the economic order quantity (EOQ) of soft drinks for 2020.

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Answered: QUESTION 1 The following information…

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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5- The annual production capacity of Enterprise A is 20,000 units. For the year 2020 of the enterprise; The breakdown of production-sales volume and some expense items is as follows. According to the normal cost method, how much is the end-of-period inventory cost of the business? a) 530,000 B) 425,000 NS) 480,000 D) 430,000 TO) 500,000
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