LINA BALLERINA

$($Afr volg na Eng$)$

Lina Ballerina is a company that sells ballerina slippers. It employs the periodic inventory system.

Information with regard to inventory is as follows:

Opening inventory

Purchases on $1$ March $2014$

Purchase returns

Purchases on $30$ June $2014$

Freight on purchases

Sales $(1$ March $2014-31$ July $2014)$

$200$ pairs @ R$350$ per pair

$550$ pairs @ R$370$ per pair

$50$ pairs @ R$370$ per pair

$120$ pairs @ R $380$ per pair

R$12$ per pair

$650$ pairs @R $420$ per pair

REQUIRED

Assume that Lina Ballerina uses the weighted average method. Calculate the gross profit for the period $1$ March to $31$ July $2014.$

What is the profit mark$-$up on cost that is achieved by Lina Ballerina if the weighted average method is applied?

Assume that Lina Ballerina uses the FIFO method. Calculate the value of closing inventory.