You are provided with information relating to Banyana Traders, owned by David Hambeck, for the financial...

  

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You are provided with information relating to Banyana Traders, owned by David Hambeck, for the financial year ended 28 February 2023. The business is situated in Johannesburg. David buys and sells soccer balls and jerseys. The business uses the periodic inventory system. The soccer balls are bought from South African suppliers, and the soccer jerseys of different clubs and countries are imported from overseas. David employs salespersons to control each item of stock: • James controls and sells the soccer balls • Cyril controls and sells the soccer jerseys David has decided on the following accounting policies for valuing inventory: • Soccer balls - Weighted-average method • Soccer jerseys - First-in-first-out method (FIFO) REQUIRED: 3.1 Although this business has done well, David is considering closing it down and investing his capital in fixed property. State TWO (2) points that he should consider before making a final decision. 3.2 David suspects that a number of soccer balls have been shoplifted. Calculate the number of soccer balls stolen. 3.3 Use the relevant information to calculate the closing stock value of: Soccer balls (using the weighted-average method) • Soccer jerseys (using the FIFO method) (Show your workings to earn part-marks). 3.4 Calculate the following for soccer jerseys. (You may prepare a Trading Account to calculate these figures): • Cost of sales • Mark-up % on cost INFORMATION: Inventories DATE 28/02/2023 01/3/2022 no. of units 1200 900 soccer balls per unit ? 120 total value ? 144000 no. of units 520 250 soccer jerseys per unit ? 320 total value ? 166400 Purchases During the financial year ended 28 February 2023, the following stock items were purchased: date of purchase 31/03/2022 30/06/2022 30/09/2022 02/1/2023 Total items soccer balls soccer jerseys Financial Indicators soccer balls no. of units per unit total value 1300 120 150 175 180 items soccer balls soccer jerseys 900 1000 200 3400 Carriage on purchases: During the year, the business paid a total of R30 200 to transport soccer balls to the shop. The price of the soccer jerseys includes carriage. Sales details 3500 units @ R320 each 2770 units @ R400 each mark-up % on cost 156000 135000 175000 36000 502000 48.50% ? no. of units 400 600 1400 100 2500 soccer jerseys per unit total value 200 225 255 300 total stock turnover rate 80000 135000 357000 30000 602000 3.9 times p.a ? times p.a 1120000 1108000 You are provided with information relating to Banyana Traders, owned by David Hambeck, for the financial year ended 28 February 2023. The business is situated in Johannesburg. David buys and sells soccer balls and jerseys. The business uses the periodic inventory system. The soccer balls are bought from South African suppliers, and the soccer jerseys of different clubs and countries are imported from overseas. David employs salespersons to control each item of stock: • James controls and sells the soccer balls • Cyril controls and sells the soccer jerseys David has decided on the following accounting policies for valuing inventory: • Soccer balls - Weighted-average method • Soccer jerseys - First-in-first-out method (FIFO) REQUIRED: 3.1 Although this business has done well, David is considering closing it down and investing his capital in fixed property. State TWO (2) points that he should consider before making a final decision. 3.2 David suspects that a number of soccer balls have been shoplifted. Calculate the number of soccer balls stolen. 3.3 Use the relevant information to calculate the closing stock value of: Soccer balls (using the weighted-average method) • Soccer jerseys (using the FIFO method) (Show your workings to earn part-marks). 3.4 Calculate the following for soccer jerseys. (You may prepare a Trading Account to calculate these figures): • Cost of sales • Mark-up % on cost INFORMATION: Inventories DATE 28/02/2023 01/3/2022 no. of units 1200 900 soccer balls per unit ? 120 total value ? 144000 no. of units 520 250 soccer jerseys per unit ? 320 total value ? 166400 Purchases During the financial year ended 28 February 2023, the following stock items were purchased: date of purchase 31/03/2022 30/06/2022 30/09/2022 02/1/2023 Total items soccer balls soccer jerseys Financial Indicators soccer balls no. of units per unit total value 1300 120 150 175 180 items soccer balls soccer jerseys 900 1000 200 3400 Carriage on purchases: During the year, the business paid a total of R30 200 to transport soccer balls to the shop. The price of the soccer jerseys includes carriage. Sales details 3500 units @ R320 each 2770 units @ R400 each mark-up % on cost 156000 135000 175000 36000 502000 48.50% ? no. of units 400 600 1400 100 2500 soccer jerseys per unit total value 200 225 255 300 total stock turnover rate 80000 135000 357000 30000 602000 3.9 times p.a ? times p.a 1120000 1108000

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Calculate the cost of sales for soccer jerseys for banyana traders for the ... View the full answer