Answer all Questions.

1. The following transactions of Fernglen Limited, a manufacturer of children's tables and chairs took place during April 2017.

April
01	Stock on hand	600 units @ R220 per unit
03	Issued to production	350 unit
08	Return from production to stores	50 units
17	Purchase from supplier	2000 units @ R230 per unit
20	Issued to production	800 unit
21	Returned to supplier (purchased on 17 April 2017)	200 units
30	Issued to production	800 units

1.1 Determine the value of closing inventory based on the First-in-first-out (FIFO) Method (13 Marks)

1.2 Ricey Wholesalers sells 8 000 bags of rice each year. The inventory holding cost of one bag of rice is R5. The cost of placing an order for stock is estimated at R160.

1.2.1 Calculate the EOQ. (4 marks)

1.2.2 Calculate the number of orders that should be placed per annum. (Round off calculations to the nearest whole number.) (3 marks)