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Question 1 : Use the information given below to calculate the value of closing inventory as at 31 March 2020 and value of issues to production for March 2020 using the:
Weighted average cost method.
First-in-first-out (FIFO) method.
INFORMATION
The following transactions of Dreamcoat Manufacturers, which uses the periodic inventory system, took place during March 2020 in respect of a component used in production:
March
01 Opening inventory 4 000 units @ R20 per unit
16 Purchased from a supplier 15 000 units @ R21 per unit
17 Returned to the supplier (purchased on 16 March 2020) 2 000 units
20 Purchased from supplier 3 000 units @ R22 per unit
31 Issues to production during March 2020 16 000 units
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