VIPSolutions

VIPSolutions logo ✨ VIPSolutions

Home Dashboard Ask AI Archive

Give step-by-step solution with explanation and final answer: (give me answer without using bullet-points)FOR THE YEAR ENDED 31 DECEMBER 2025 INFORMATION The follwing budgeting information was provided by Mega Manufacturers for 2025 in respact of the producs fnor it manufacturer. + An inventory of 600 units at a cost of R80 each is expected on 01 January 20295. « Production for 2025 is estimated to be 3000 units at R90 each. « The sales volume is expected to be 3200 units. + Mega Manufacturers uses the first-in-first-out method to value inventories. Particulars Units Unit Cost (R) Total Cost (R) Opening Inventory 600 :{0] 48,000 Production 3000 90 270,000 Goods Available for Sale ~~ 3600 860 318,000 Less: Closing Inventory 400 90 36,000 Cost of Sales R90 282,000

Question:

Give step-by-step solution with explanation and final answer: (give me answer without using bullet-points)Uploaded ImageFOR THE YEAR ENDED 31 DECEMBER 2025 INFORMATION The follwing budgeting information was provided by Mega Manufacturers for 2025 in respact of the producs fnor it manufacturer. + An inventory of 600 units at a cost of R80 each is expected on 01 January 20295. « Production for 2025 is estimated to be 3000 units at R90 each. « The sales volume is expected to be 3200 units. + Mega Manufacturers uses the first-in-first-out method to value inventories. Particulars Units Unit Cost (R) Total Cost (R) Opening Inventory 600 :{0] 48,000 Production 3000 90 270,000 Goods Available for Sale ~~ 3600 860 318,000 Less: Closing Inventory 400 90 36,000 Cost of Sales R90 282,000

This is AI generated Response.
Asked by: Francis
Created at: 2026-01-20 00:47:15

Final Answer:

Rendered Raw Text
Did you like this answer?
Let's solve the cost of sales step-by-step using the information provided: First, calculate the total goods available for sale by adding the opening inventory (600 units at R80 each, totaling R48,000) to the production for the year (3,000 units at R90 each, totaling R270,000). This gives us 600 + 3,000 = 3,600 units, and R48,000 + R270,000 = R318,000 as the total cost of goods available for sale. Next, subtract the closing inventory. Since the sales volume is expected to be 3,200 units out of the 3,600 units available, the closing inventory will be 3,600 - 3,200 = 400 units. These 400 units are valued at the most recent production cost (R90 each) due to the FIFO method, so the closing inventory value is 400 × R90 = R36,000. Now, subtract this closing inventory value from the total goods available for sale: R318,000 - R36,000 = R282,000. The final answer, which is the cost of sales for the year ended 31 December 2025, is **R282,000**.

📢 Instructions:

  • Ask anything relatd to above question only.
  • For new Question goto :
    Ask AI

Related Answers

Study Help, Fast Answers

VIPSolutions focuses on clear, step‑by‑step explanations so you can learn quickly. Whether you need an AI‑generated walkthrough or a short hint to get unstuck, each solution is organized for fast reading and easy review later.

Search similar questions, compare approaches, and bookmark the best answers for revision. Our goal is simple: quick, reliable study help that feels natural—not noisy.