QUESTION 1 (25 marks) Neopack (Pty) Ltd trades in plastic storage containers. The firm imports 20-litre storage containers from India and are delivered to the company's premises in Vryheid, northern KwaZulu-Natal. On 10 September 2020, Neopack placed an order for 500 units of 20-litre storage containers. The Indian supplier issued an invoice for R105 per 20-litre container. The shipment was then sent from the supplier's warehouse in the Middle East and arrived in Johannesburg two days later. The containers were cleared through OR Tambo International Airport and import duties as well as clearance charges of R1 800 were paid in cash. The containers were transported by road from Johannesburg to Vryheid and were delivered at company's premises on 16 September 2020. A total road freight charge for R700 was paid in cash. On 01 September 2020, the inventory of 20-litre storage containers reflected a balance of 50 units valued at R5 400. During the month of September 2020. Neopack sold 485 storage containers. The total credit and cash sales amounted to R28 116 and R30 459, respectively. Neopack uses a perpetual inventory system and applies a mark-up of 10% on cost. REQUIRED: 1.1 With reference to IAS 2.11, discuss the amounts that will be included in the purchase cost of inventory received on 16 September 2020. (3) 1.2 Prepare the relevant general entries to record the above purchase and sales for the month (15) Determine the value of closing inventory on 30 September 2020 and describe the cost-flow assumption (method) that Neopack (Pty) Ltd adopted. 1.4 List at least the two (2) areas that the company's credit policy will generally cover. (2) [25] 1.3