Assignment 2 (55 marks) INSTRUCTIONS/REQUIREMENTS FOR ASSIGNMENTS Please note: A

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Assignment 2 (55 marks) INSTRUCTIONS/REQUIREMENTS FOR ASSIGNMENTS Please note: Answer all the questions and in blue or black ink Pencil work will not be marked You may not use tipex or colours Always try to do all the questions yourself Question 1 (20 marks) Polyoak Packaging Ltd uses the perpetual system of inventory control and valuation. The following transactions took place in December 2017 Opening stock 100 units, valued at N$10.00 Purchased: 100 units @N$15.00 per unit 1 2 Purchased: 80 units@NS20.00 per unit 5 Issued 60 units 6 Issued 100 units 9 Purchased: 150 units@N$25.00 13 ssued: 80 units 14 Issued 40 units Required 1 Compile a stores ledger card, using the First-in, first-out (FIFO) method of issuing 2. Compile a stores ledger card, using the continuous weighted average (CWA) method materials and state the value of the closing stock of material on 31 December 2017 of issuing materials and state the value of the closing inventory of material on 31 December 2017

Explanation / Answer

Stores ledger card: FIFO: Units available Units issued Units in balance Date Units   @ cost Units issued @ cost Units   @ cost 1-Dec 100 10 1000 100 10 1000 1-Dec 100 15 1500 100,100 10,15 2500 2-Dec 80 20 1600 100,100,80 10,15,20 4100 5-Dec 60 10 600 40,100,80 10,15,20 3500 6-Dec 40,60 10,15 1300 40,80 15,20 2200 9-Dec 150 25 3750 40,80,150 15,20,25 5950 13-Dec 40,40 15,20 1400 40,150 20,25 4550 14-Dec 40 20 800 150 25 3750 Total 4100 3750 CWA method: Units available Units issued Units in balance Date Units   @ cost Units issued @ cost Units   @ cost 1-Dec 100 10 1000 100 10 1000 1-Dec 100 15 1500 200 12.5 2500 2-Dec 80 20 1600 280 14.64 4100 5-Dec 60 14.64 878.4 220 14.64 3221.6 6-Dec 100 14.64 1464 120 14.64 1757.6 9-Dec 150 25 3750 270 20.4 5507.6 13-Dec 80 20.4 1632 190 20.4 3875.6 14-Dec 40 20.4 816 150 20.4 3059.6 Total 4790 3059.6

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