5.1 Ford expects to sell approximately 2000 cars per month during 2020. The estimated cost of placing an order for the car is R22. The inventory holding cost of one Bugatti car is R5. Required:

Calculate the annual economic order quantity using the necessary formula? (5 marks)

5.2 Use the following transactions for Tata Limited to complete the table below which will indicate the value of the closing stock using the First- in- first out method. This stock consists of a component used in production of the final product. (15 marks)

December Transactions Number of units and cost

01 Opening inventory 120 units @ R9 per unit

08 Purchased from supplier 300 units @ R10

12 Issued to production 220 units

19 Returned to supplier 50 units (purchased on 08 December)

22 Purchased from supplier 150 units @ R12

28 Issued to production 250 units