QUESTION 2 (20 MARKS) Motor Spares ("MS") is a company located in Tsumeb that sells various types of motor vehicle spares. One of its flagship product is a gasket that is mostly used by pickup trucks (bakkies). The gaskets are purchased from a local manufacturer situated in Walvis Bay. The following information has been made available by the procurement and sales departments: Quarter 2020 1 2 3 4 Units purchased Cost per unit Total purchases (N$) Units sold 300 30 9 000 300 400 35 14 000 300 400 36 14 400 300 300 37 11 100 300 1 400 48 500 1 200 What is the gross profit for the year based on FIFO cost of sales figure given a margin of 20%? Inventory at the beginning of 1st quarter was 500 units at N$29 per unit and Inventory at end of 4th quarter was 700 units. Based on inventory reports for the last 5 years, the delivery period for gaskets has been between 1 to 2 weeks and on average MS sales were between 200 to 300 gaskets per quarter. REQUIRED: 2.1 Using the FIFO method, calculate the cost of goods sold 2.2 Using the LIFO method, calculate the cost of goods sold 2.3 MARKS 5 5 2 2.4 Re-order level 2 2.5 Minimum inventory level. 2.6 Name any three documents involved in inventory control. 3 3 TOTAL MARKS 20 Page 11 of 15