Question
Inventory valuation: WAM
Squeezi Salad dressing CC manufactures and bottles salad dressing. They recorded the following
transactions for the plastic bottles used to hold the dressing. The Weighted Average Method
WAM is used for the inventory valuation of raw material.
Required:
Draw up the inventory sheet for the bottles used by Squeezi Salad dressing CC
Clearly indicate the following:
The quantity of bottles received by Maloti Pty Ltd
The value of bottles received by Maloti Pty Ltd
The quantity of bottles issued by Maloti Pty Ltd
The value of bottles issued by by Maloti Pty Ltd
The total quantity of the bottles in the inventory of Maloti Pty Ltd
The total value of the bottles in the inventory of Maloti Pty Ltd
Squeezy Salad Dressings CC write up their books of account on a monthly basis
using the inventory cards.
Draw up the relevant ledger accounts for Squeezi Salad dressings CC and post the
monthly inventory totals to the ledger accounts. Start with any opening balances
given and assume all purchases are on credit. You MUST balance the ledger
accounts. Returns must be shown separately.
