Q4

Pots \& Pebbles (Pty) Ltd is small company in Johannesburg specialising in the supply of a variety of hard landscaping products. It has provided you the information below in relation to its standard round flowerpots for the month of October 2023. The value of stock on 30 September 2023 was R2 500 ( 10 units). The company requires a 25% mark-up on cost price. REQUIRED: a) Calculate the value of closing inventory for the month of October using the weighted average method of inventory valuation. (12) b) Calculate the gross profit if the entity uses a 30% mark-up on cost price. (3) Show your workings, where necessary round-off to two (2) decimal places. Do not use currency symbols in your answer, e.g. R50 is written as 50