MULTIPLE-CHOICE QUESTIONS CASE STUDY 1 - Accounting for; and valuation of purchased inventory Buyrite Limited uses a perpetual inventory system and applies the first-in-first-out (FIFO) method for the valuation of inventory. The opening balance of inventory on 1 July 2020 was 200 units at the value of R40 000 During the month, the following purchases were made: Date Quantity Total cost R 03 July 50 units 11 000 05 July 100 units 21 000 13 July 100 units 21 500 During the month, the following sales were made: Date Quantity 04 July 150 units 08 July 80 units 9 July 60 units 25 July 120 units The company applies a consistent mark-up of 30% on cost. Use the Information provided in case study 1 to answer questions 11 to 14: QUESTION 11 The cost of sales for July amounts to... 1) R85 100 2) R88 150 3) R84 900 None of the above-mentioned alterative QUESTION 12 The gross profit for July amounts to 1) R25 830. 2) R25 470 3) R25 445 4) None of the above-mentioned alterative QUESTION 13 The Journal entry for recording the cash purchase on 03 July 2020 would be .. 1) Dr Bank Cr Inventory of merchandise control account 2) Dr Inventory of merchandise control account Cr Bank 3) Dr Purchases Cr Bank None of the above- mentioned alternative QUESTION 14 The value of Inventory at the end of July 2020 was ... 1) R12 600 2) R8 400. 3) R8 600. 4) None of the above-mentioned alternative