QUESTION 3 (20 Marks) 3.1 The following transactions of Nagle Manufacturers took place during May 2015 in respect of a component used in production: May 01 03 08 18 20 21 Stock on hand Issued to production Returned from production to stores Purchased from supplier Issued to production Returned to supplier (purchased on 18 May 2015) Issued to production 300 units @ R22 per unit 200 units 50 units 2000 units @R24 per unit 800 units 200 units 29 700 units Required: 3.1 Determine the value of closing inventory based on the First-in-first-out (FIFO) method. (13 marks) 3.2 Jacobs Ltd sells 4 000 drums of grease each year. The inventory holding cost of one drum of grease is R8. The cost of placing an order for stock is estimated at R250. 3.2.1 Calculate the EOQ for drums of grease. (4 marks) 3.22 Calculate the number of orders that should be placed per annum. (3 marks) (Round off calculations to the nearest whole number.)