Question

e called the winema/mounts over its expected useful li method When the cost of an asset is written off each each year in equal the method of depreciation in use is called th fixed instalment diminishing balance sum of the digits unit of instalment 1.6 Was overdue for three months. AC Traders charger Traders 'y howowee Tony owed AC Traders R2 400. His acon interest at a rate of 12% per annum. Tony now owes ACTO R72 R2 472 R2 688 none of the above 1,75 R20 400, The value of inventory on 31 December 2018 using the weighted average cost" mber 2018 using the weighted average cost method from the following information is December Units of inventory Unit cost price Opening inventory 20000 Purchases R25 Purchases R30 Sales for December 85000 100 000 R375 000 105,00 R425 000 R367 500 70 000 10000 0750X 300,00 none of the above 875,00 40 -21,87 2,450 40 = 6061,2

Answer 1

1.5	A. fixed installment
	Fixed Installment Method or Straight Line Method, In this method
	a fixed or equal amount of depreciation written off as depreciation
	at the end of each year.
1.6	C. R2,688
	(R2,400 + R2,400 x 12% x 3/12)
1.7	C. R367,500
	Ending Inventory (15,000 x R24.50)
	Inventory cost per unit = R2,450,000/100,000 = R24.50
	Units	Unit Cost	Total Cost
	20,000	R20	400,000
	70,000	R25	1,750,000
	10,000	R30	300,000
	100,000		2,450,000