QUESTION 2 (20 Marks) 2.1 REQUIRED Use the information provided below to calculate the value of closing inventory as at 31 December 2018 and the cost of sales for the year ended 31 December 2018 using the: 2.1.1 FIFO method (7 marks) 2.1.2 Weighted Average Cost method. (7 marks) INFORMATION Donish Stores had the following inventory of clocks on 01 January 2018, the start of the financial year. 30 units at R80 each purchased on 27 November 2017 45 units at R82 each purchased on 10 December 2017. During 2018 the following purchases and returns of clocks were recorded: 80 units at R90 each were purchased on 25 March 2018. 15 units that were purchased on 25 March 2018 were returned to the supplier. 60 units at R95 each were purchased on 20 November 2018. During the year (2018) 130 clocks were sold at R80 each. 2.2 REQUIRED Use the information given below to calculate the economic order quantity and the number of orders that need to be placed annually. (6 marks) INFORMATION The annual sales of a product sold by Phoenix Limited is 1 800 000 units. The purchase price is R12 per unit. The carrying cost of inventory amounts to 12% of the purchase price. The ordering cost is R18 per order.