Assume Value Added Tax (VAT) at 15%. Pop-IT Retailers is a registered VAT vendor, which has been in operation for a number of years. The business buys and sells several different items of inventory. However, the information provided here relates only to one particular item of inventory named “Mega-U”. The business records transactions relating to inventory using the perpetual inventory system, and cost of inventory is arrived at on the first-in-first-out basis. On 1 July 2022, the business had 800 units of inventory on hand at a cost of R40 each. The following transactions took place during the month of July 2022:-

1. On 8 July 2022, the business bought 2 200 units of inventory at R50 per unit. This price excluded VAT and a cash discount of 10% (if the inventory is purchased for cash). PopIT Retailers paid cash for the inventory. The supplier delivered the inventory at no extra charge.

2. On 12 July 2022, the business received 5 100 units of inventory from City Wholesalers which had been ordered on 6 July 2022. The inventory had a list price of R351 900 (including VAT). A settlement discount of 3% was also offered if payment was received within 15 days from the date of delivery. It was anticipated that the settlement would not be taken at the time of the transaction. On the same date, the business paid by cheque the amount of R11 730 (including VAT) to the company that transported the inventory.

3. On 13 July 2022, 100 units of inventory were returned to City Wholesalers and a credit note was received

. 4. On 15 July 2022, 3 800 units of inventory were sold on credit to B Adams for R275 310 (including VAT).

5. On 25 July 2022, the business settled their debt owing to City Wholesalers by cheque.

You are required to: a) Calculate the cost per unit of inventory purchased on: i. 8 July 2022,

ii. 12 July 2022

b) Prepare the journal entries recording transactions above.

c) Calculate the percentage mark-up on cost of inventory sold to B Adams on 15 July 2022.

d) Calculate the amount at which inventory would be shown in the Statement of Financial Position as at 31 July 2022.