Case study:

A small shoe manufacturing company called We$-$sole sells one product: rubber soles. We$-$sole

buys soles at a cheap price and then resells them. For the month of October, the following

transactions occurred. The company uses the perpetual inventory system:

Opening inventory: $3,000$ soles selling at a price of R$18$ per sole, at a mark$-$up of $20\%$ on cost$.$

$2,000$ soles were sold on the $5^{th}$ at R$20$ each.

$1,000$ soles were purchased on the ${10}^{th}$ at R$12$ each.

$1,500$ soles were sold on the ${15}^{th}$ at $R21$ each.

$2,500$ soles were purchased on the ${29}^{th}$ at R$10\mathrm{.}50$ each.

Question $2$

$2\mathrm{.}1$ Calculate the value of the closing inventory and cost of sales at the end of October using

the FIFO method. Use the following table.

$2\mathrm{.}2$ Calculate the value of the closing inventory and cost of sales at the end of October using

the WAC method. Use the following table.