Question 10

Use the following information to answer questions 9 and 10. Madlukovu Limited is a retailer that has adopted a perpetual inventory system and a weighted average cost flow assumption. At the beginning of January 2020 there were 1 000 units of merchandise in inventory. The total value of opening inventory was R45 000. During January 2020 the following purchases were made: Date and units 8 January: 200 units at R46 each 15 January:150 units at R48 each 22 January: 120 units at R50 each 29 January 100 units at R51 each During January 2020 the following sales took place: Date Sales 5 January... 300 units 10 January.. 400 units 16 January 250 units 28 January 170 units 30 January 30 units 10. Assume that Madlukovu Limited applies a consistent mark-up of 40% on cost. The gross profit for January was R... 1) R31 500 2) R8 022 3) R29 000 4) R20 978