Observation

Many candidates attempted this question.

This part of the question was well answered by the candidates such that a large number of the candidates did very well.

Few candidates lost some marks in this part as a result of not being able to list and explain the methods of pricing material issues. Some listed the types of warehouse in place of the methods of pricing material issued.

The responses expected from candidates are:

1. A goods received note is a document which is prepared and issues by a storekeeper on receipt of goods from suppliers or user department.     


2. Methods of pricing material issues
   
   • FIFO – it is a method of pricing material issued where goods are issued at the price of the earliest material received in the store
   • LIFO – it is a method of pricing material issued out at the price of the latest material received.
   • Weighted average – this is the method of pricing material issued based on the average price of the total value of goods in the store.
   • Simple average – this is the method of pricing material issued based on the average unit price of the materials in the store.


3. Ways of caring for storage equipment:
   • By ensuring regular maintenance of these equipment by qualified personnel.
   • By ensuring that operating instructions are followed by users of the equipment.
   • By ensuring the equipment is promptly repaired in case of breakdown.
   • The equipment must not be exposed to unfavourable environmental conditions.
   • Users of the equipment should be properly trained on the operation of the equipment.
   • Signs of damages to the equipment should be promptly reported for immediate action.
   • Equipment should be used only for the appropriate purpose.