Tlou (Pty) Ltd is a company that acts as an intermediary. It purchases prescribed books for university students from various supplies and sell them to various University departments. You have been appointed as the inventory accountant of the company, where inventory is a major problem due to distribution and storage costs. The prices of the textbooks fluctuated over the period since the beginning of the year. The following Information is made avalable to you: 1/11/2019 Opening balance 400units e total of R100 000 3/11/2019 Purchased 125 units e R225 per unit 7/11/2019 Purchased 75 units e R230 per unit 09/11/2019 50 textbooks were returned to a suppliler (Bought on 3/11/2019) due to Damage and was not replaced by the supplier 11/11/2019 Sold 200 units @ R350 per unit 13/11/2019 Purchased 250 units e R280 per unit 16/11/2019 Sold 150 units e R350 per unit 20/11/2019 25 textbooks previously bought on 11/11/2019 were Returned by a customer. 21/11/2019 Purchased 260 units e R265 per unit 23/11/2019 Sold 250 units e R350 per unit 24/11/2019 Tlou Limited returned 70 textbooks to the supplier Because they were wrong textbooks, purchased on 21/11/2019 27/11/2019 Sold 80 units e R350 per unit 28/11/2019 Purchased 200 units e R270 per unit 29/11/2019 Customer returned 15 units sold on 23/11/2019 REQUIRED: 2.1 Calculate the value of the textbooks in closing inventory for November 20x9 according to the periodic inventory system using weighted average method.
Tlou (Pty) Ltd is a company that acts as an intermediary. It purchases prescribed books for university students from various supplies and sell them to various University departments. You have been appointed as the inventory accountant of the company, where inventory is a major problem due to distribution and storage costs. The prices of the textbooks fluctuated over the period since the beginning of the year. The following Information is made avalable to you: 1/11/2019 Opening balance 400units e total of R100 000 3/11/2019 Purchased 125 units e R225 per unit 7/11/2019 Purchased 75 units e R230 per unit 09/11/2019 50 textbooks were returned to a suppliler (Bought on 3/11/2019) due to Damage and was not replaced by the supplier 11/11/2019 Sold 200 units @ R350 per unit 13/11/2019 Purchased 250 units e R280 per unit 16/11/2019 Sold 150 units e R350 per unit 20/11/2019 25 textbooks previously bought on 11/11/2019 were Returned by a customer. 21/11/2019 Purchased 260 units e R265 per unit 23/11/2019 Sold 250 units e R350 per unit 24/11/2019 Tlou Limited returned 70 textbooks to the supplier Because they were wrong textbooks, purchased on 21/11/2019 27/11/2019 Sold 80 units e R350 per unit 28/11/2019 Purchased 200 units e R270 per unit 29/11/2019 Customer returned 15 units sold on 23/11/2019 REQUIRED: 2.1 Calculate the value of the textbooks in closing inventory for November 20x9 according to the periodic inventory system using weighted average method.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Tlou (Pty) Ltd is a company that acts as an intermediary. It purchases prescribed books for
university students from various supplies and sell them to various University departments. You
have been appointed as the inventory accountant of the company, where inventory is a major
problem due to distribution and storage costs.
The prices of the textbooks fluctuated over the period since the beginning of the year. The
following Information is made available to you:
1/11/2019 Opening balance
400units e total of R100 000
3/11/2019 Purchased
125 units @ R225 per unit
7/11/2019 Purchased
75 units e R230 per unit
09/11/2019 50 textbooks were returned to a supplier (Bought on 3/11/2019) due to
Damage and was not replaced by the supplier
11/11/2019 Sold
200 units @ R350 per unit
13/11/2019 Purchased
250 units e R280 per unit
16/11/2019 Sold
150 units @ R350 per unit 20/11/2019
25 textbooks previously bought on 11/11/2019 were
Returned by a customer.
21/11/2019 Purchased
260 units @ R265 per unit
23/11/2019 Sold
250 units e R350 per unit
24/11/2019 Tlou Limited returned 70 textbooks to the supplier
Because they were wrong textbooks, purchased on
21/11/2019
27/11/2019 Sold
80 units @ R350 per unit
28/11/2019 Purchased
200 units e R270 per unit
29/11/2019 Customer returned 15 units sold on 23/11/2019
REQUIRED:
2.1 Calculate the value of the textbooks in closing inventory for November 20X9 according
to the periodic inventory system using weighted average method.
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