QUESTION FOUR [30]

Cosmic Cals (Pty) Ltd , a seller of personalized scientific calculators, had an inventory of 40 calculators. The value of these calculators is R15 400 each on the 1 January 2022.

During the current year the following purchases were made:

580 units at R16 800 each on 25 February 2022

200 units at R17 600 each on 30 September 2022

60 units at R18 000 each on 15 November 2022

During the year 780 computers were sold at R28 000 each. The companys year end is 31 December 2022.

Required:

4.1 The value of closing inventory and cost of sales if the FIFO method of valuing inventories is used. (13)

4.2 The value of closing inventory and gross profit if the weighted average cost method of valuing inventories is used. (10)

4.3 List six factors that affect the demand of stock. (6)