QUESTION 2 (20 marks; 36 minutes) Ignore VAT Trendz is a retailer buying and selling clothing. The owner, Mrs Obama has adopted a perpetual system to record inventory and decided to use the First-In First-Out (FIFO) method to assign costs to the inventory sold. On 28 February 2020, the bookkeeper presented Mrs Obama with the following incomplete general ledger accounts for the period 1 January 2020 to 28 February 2020. Inventory Rand Rand Jan 01 Balance (700 units @ R7) 4 900 Jan 06 Bank (300 units @ R7.50) 2 250 Feb 07 Bank (300 units @ R8.00) 2 400 Sales Feb 05 4 800 Bank (400 units @ R12.00) Bank (550 units @ R12.00) Feb 10 6 600 You are required to: a) Prepare the cost of sales account, given that the FIFO method is used as it should appear in the general ledger for the period 1 January 2020 to 28 February 2020. (Contra details must be shown.) (5 marks) b) Calculate the closing inventory, given that the FIFO method is used as at 28 February 2020. (4 marks) c) Calculate the cost of sales and closing inventory if the weighted average method is used to assign costs. (11 marks) QUESTION 3