REQUIRED

Study the information provided below and answer the following questions:

$2\mathrm{.}2\mathrm{.}1$ Prepare an extract of the Statement of Comprehensive Income to determine the gross

profit for the year ended $31$ December $2023$ and the value of closing inventory as at $31$

December $2023$ using the LIFO method.

$2\mathrm{.}2\mathrm{.}2$ Calculate the value of closing inventory as at $31$ December $2023,$ if the weighted average

cost method is used. $($Express the weighted average cost per unit to the nearest cent.$)$

INFORMATION

Elna Suppliers had the following inventory of retaining blocks on $01$ January $2023,$ the start of the

financial year:

During $2023$ the following purchases$/$returns were made:

$1350$ blocks were purchased at R$40$ each on $31$ March $2023.$ Carriage amounted to R$2$ per unit.

$250$ blocks that were purchased on $31$ March $2023$ were returned to the supplier a day later. A refund was

obtained on the carriage.

$400$ blocks were purchased at R$42$ each on $31$ October $2023.$ Carriage amounted to R$3$ per unit.

Note: Carriage on purchases are not included in the purchase prices.

Sales during $2023$:

During the year $1400$ blocks were sold. $1000$ blocks were sold at R$70$ each and the balance was sold at R$80$

each.QUESTION $2$

$2\mathrm{.}1$

REQUIRED

Use the information provided below to determine the following:

$2\mathrm{.}1\mathrm{.}1$ EOQ if discounts are not available.

$2\mathrm{.}1\mathrm{.}2$ EOQ where discounts are available.

The following information was provided by GH Suppliers for a product that it sells:

The supplier offered the following discount scheme: