2.1 REQUIRED Use the information provided below to calculate the total cost of carrying the average inventory. (4 marks) INFORMATION Global Wholesalers sells 2 400 watches per year and orders inventory 12 times a year. The watches are imported at a cost of R100 each. The cost of capital is 15%. The firm incurs storage costs of R720 and inventory insurance costs of R480 per year. No safety stocks are carried 2.2 REQUIRED Calculate the total annual ordering cost for the pens from the information provided below. (4 marks) INFORMATION Diva Traders sells 50 400 pens per year and carries an average inventory of 12 600 units. The fixed ordering costs for placing and receiving orders of the pens amount to R120 per order. 2.3 REQUIRED Calculate the value of closing inventory and gross profit for the year ended 31 December 2018 using the: 2.3.1 First-in-first-out method (5 marks) 2.3.2 Weighted average cost method. (4 marks) Note: An extract of the Statement of Comprehensive Income must be used to reflect the above. INFORMATION Jack's Hardware had the following inventory of taps on 01 January 2018, the start of the financial year Quantity Unit purchase price Carriage on purchases per unit 36 taps R300 R12 During 2018 the following purchases, returns and sales were made: 320 taps were purchased at R320 each on 31 March 2018. Carriage amounted to R10 per unit. 120 taps that were purchased on 31 March 2018 were returned to the supplier. A refund was obtained on the carriage. 264 taps were purchased at R335 each on 31 August 2018. Carriage amounted to R12 per unit. 400 taps were sold during the year at R550 each. Note: The carriage costs are not included in the purchase prices stated above. State THREE (3) advantages of a high inventory turnover rate to a business entity