Golfing World is a retail entity that sells golf clubs and golf balls. The business entity applies the

periodic inventory system. Golfing World and all of its suppliers are registered VAT vendors and

VAT is charged at a rate of $15\%.$

INFORMATION:

$1.$ Inventory is valued according to the following methods:

$$ Golf clubs: First$-$in$-$first$-$out method $($FIFO$)$

$$ Golf balls: Weighted average method

$2.$ Inventory valuations $($excluding VAT$)$ at the beginning and end of the accounting period:

GOLF CLUBS GOLF BALLS

Units Cost per

unit $($R$)$ Value $($R$)$ Units Cost per

unit $($R$)$ Value $($R$)$

$1$ March $202390800,007200012009,6011520$

$28$ February $2024205?189250550??$

$3.$ Carriage, exchange rates and import duties:

$$ Golf clubs: All the golf clubs are locally manufactured. Transport costs are R$50$ per golf

club and a total of R$15000$ was paid for transporting the $300$ golf clubs purchased $($refer

note $4).$ Transport costs are included in the unit cost for opening inventories.

$$ Golf balls: All golf balls are imported from the USA and prices are quoted in US dollars

$($$$).$ The exchange rate was R$7,50=$ $$1,00$ throughout the financial year. Import duties

are levied at $20\%$ of the Rand value of purchases. Transport costs are paid by the

manufacturer. Import duties are included in the unit cost for opening inventories.

$4.$ Purchases during the year $($excluding VAT$)$:

GOLF CLUBS GOLF BALLS

Units Cost per

unit $($R$)*$ Value $($R$)$ Units Cost per

unit $($$$)**$ Value $($$$)$

$25$ April $202375750,005625030001,003000$

$25$ July $202375800,006000030001,203600$

$26$ October $202375900,006750030001,203600$

$25$ January $202375900,006750030001,604800$

Total $3002512501200015000$

$*$ Please note that the unit cost of golf clubs excludes transportation costs.

$**$ Please note that the unit price of golf balls excludes import duties.

$5.$ Sales during the year $($excluding VAT$)$:

$$ Golf clubs: $185$ units at R$1200$ each $=$ R$222000$

$$ Golf balls: $10500$ units at R$19$ each $=$ R$199500$

REQUIRED:

a$)$ Calculate the value of closing inventories for the golf balls and golf clubs at $28$

February $2024$ using the appropriate method as specified.

b$)$ Calculate the cost of sales for golf ball and golf clubs for the year ended $28$ February

$2024.$

c$)$ Calculate the mark$-$up percentage for golf clubs