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Homework answers / question archive / Use the information provided below to answer the following: Euroci (Pty) Ltd uses a perpetual inventory system and applies the weighted average method for the valuation of inventory

Use the information provided below to answer the following: Euroci (Pty) Ltd uses a perpetual inventory system and applies the weighted average method for the valuation of inventory

Accounting

Use the information provided below to answer the following: Euroci (Pty) Ltd uses a perpetual inventory system and applies the weighted average method for the valuation of inventory. The following information about direct materials inventory relates to the month ended 31 December 2020: Date 03/12/2021 08/12/2021 15/12/2021 16/12/2021 Transaction Issue of 250 units Purchase of 300 units at a total cost of R33 000 Issue of 190 units Returns from factory to store: 40 excess units from goods issued on 15 December. Returned units are in good condition Purchase of 100 units at a total cost of R9 000 Issue of 240 units 21/12/2021 25/12/2021 The opening balance of direct materials inventory on 1 December 2020 was 300 units at a total value of R31 000. (Note: Small rounding differences in inventory balances may be applicable.) 1. The value of direct materials inventory after the units purchased on 8 December 2020 was (a) R20 900 (b) R38 167 (c) R33 000 (d) R31 000 2. The value of direct materials inventory after the returns on 16 December 2020 was (a) R17 448 (b) R20 720 (c) R4 362 (d) R21 810 3. The value of direct materials inventory after the purchase of 100 units on 21 December 2020 was (a) R30 810 (6) R21 810 (c) R27 000 (d) R9 000 4. The value of direct materials closing inventory as at 31 December 2020 amounted to (a) R24 648 (b) R6 162 (c) R5 400 (d) R30 810

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