The "MAC2601 Assignment 03 HELP!" document provides assistance and guidance for students enrolled in the MAC2601 course. This assignment, due on Friday, 15th September 2023 at 9:00 PM, is a crucial part of the course curriculum. The document includes explanations, examples, and step-by-step instruc...
Assignment 3
Due: Friday, 15 September 2023, 9:00 PM
[CONFIDENTIAL] [TURN OVER]
, MAC2601
SEPTEMBER 2023
QUESTION 1 (30 MARKS) (36 MINUTES)
INDEPENDENT PART A
You have been presented with information by the management accountant of Mzanzifashion (Pty) Ltd (“Mzanzi-
fashion”), a company that manufactures dresses. Mzanzifashion uses fabric to manufacture its dresses. The
management accountant has computed the value of fabric on 31 August 2023. The inventory value of fabric has been
calculated as follows using the First-in-first-out (FIFO) valuation method:
The management accountant also used the following in calculating the inventory value of fabric:
Date Transaction
3 Purchased material .
8 Issued material to production .
12 Purchased material.
17 Returned units purchased on the 3rd and was not yet issued
to production.
30 Issued material to production.
The management accountant has requested to be informed what the value of inventory
of fabric would be on 31 August 2023, if the Weighted average method of inventory
, MAC2601
SEPTEMBER 2023
valuation is used. Assume the details of opening inventory on 1 August 2023 would be
the same as for the FIFO method.
INDEPENDENT PART B
Dairy-land (Pty) Ltd (“Dairy-land”) is a company that manufactures dairy products.
The manufacturing of the products follows a joint process. The products undergo
further processing at split-off point.
The following information relates to the production for the month of April 2023:
Products Yield Selling price per
In kilograms kilogram of the final
product
In the month of April, the products were manufactured at a joint cost of R470 000.
Dairyland allocates joint cost using the physical standard method.
During the joint manufacturing process, Dairy-land also produces a fermented by-
product called Amasi-wodumo, which is sold in 1-liter bottles. The product has a regular
market. In the month of April Dairy-land recorded a net realisable value of R100 000
for Amasiwodumo.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller MyStudyBudd. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $5.13. You're not tied to anything after your purchase.