QUESTION 2 (25 Marks) 2.1 REQUIRED Use the information provided below to determine the: 2.1.1 EOQ if discounts are not available. (Round round off your answer to the next whole number.) (2 marks) 2.1.2 EOQ where discounts are available. (15 marks) The following information was provided by GH Suppliers for a product that it sells: Annual demand 225 000 units Unit cost R75 Fixed cost per order R150 Annual carrying cost per unit 20% of unit cost The supplier offers a discount scheme as follows: Discount Order size (units) 0% 0 4 000 4% 4 001 10 000 5% 10 001 30 000 6% 30 001+ 2.2 REQUIRED Study the information provided below and answer the following questions: 2.2.1 Prepare an extract of the Statement of Comprehensive Income to determine the gross profit for the year ended 31 December 2020 and the value of closing inventory as at 31 December 2020 using the FIFO method. (5 marks) 2.2.2 Calculate the value of closing inventory as at 31 December 2020, if the weighted average cost method is used. (3 marks) INFORMATION Ellis Hardware had the following inventory of cement on 01 January 2020, the start of the financial year: Quantity Unit purchase price Carriage on purchases per unit 150 bags R70 R5 100 bags R75 R5 During 2020 the following purchases/returns were made: 675 bags were purchased at R80 each on 30 April 2020. Carriage amounted to R6 per unit. 125 bags that were purchased on 30 April 2020 were returned to the supplier one day later. A refund was obtained on the carriage. 200 bags were purchased at R90 each on 30 September 2020. Carriage amounted to R6 per unit. Note: Carriage on purchases are not included in the purchase price. Sales during 2020: During the year 750 bags were sold. 600 bags were sold for R120 each and the balance was sold at R130 each.