Question 1 [18 marks] i) (12 marks Gabex buys and sells a single standard type of plastic files. The details for the year ended 31 May 2020 are as follows: 1 June 2019 Opening inventory 600 plastic files at R60 each selling price after 20% mark-up on cost price) 31 July 2019 Purchased 200 plastic files at R80 each and carriage on the files amounted to R350 31 March 2020 Purchased 225 plastic files at R90 and carriage on the files amounted to R850 30 April 2020 Purchased 250 plastic files at R 102.50 and carriage on the files amounted to R1 250 During the financial year ended 31 may 2020, 600 diaries were sold R100 each. Required: Assuming the business uses the FIFO method of valuing inventory, a) Calculate the inventory value for the 675 plastic files on hand at the year-end (using a periodic method) (4 marks) b) Calculate the cost of sales and gross profit. (5 marks) c) Draft the trading account using the perpetual inventory system. (3 marks) HMAC200-1-JanJun 2020-SA1-GC-V1-13012020 ii) Karoo solutions, a hardware company, estimates that it will sell 392 drills per year which it will purchase from a distributor in East London. An electric drill costs R 616.00 to purchase and R 44.80 in freight charges each. The company borrows funds at 9% interest rate to finance inventories, Karoo's purchasing agent has calculated that it costs R 1 344.00 to place an order for electric drills and that the handling is R 22.40 for each electric drill. quired: a) Calculate the number of electric drills that Karoo solutions should request in each order. (4 marks) b) Calculate the annual number of orders (2 marks) Question 1 [18 marks] i) (12 marks Gabex buys and sells a single standard type of plastic files. The details for the year ended 31 May 2020 are as follows: 1 June 2019 Opening inventory 600 plastic files at R60 each selling price after 20% mark-up on cost price) 31 July 2019 Purchased 200 plastic files at R80 each and carriage on the files amounted to R350 31 March 2020 Purchased 225 plastic files at R90 and carriage on the files amounted to R850 30 April 2020 Purchased 250 plastic files at R 102.50 and carriage on the files amounted to R1 250 During the financial year ended 31 may 2020, 600 diaries were sold R100 each. Required: Assuming the business uses the FIFO method of valuing inventory, a) Calculate the inventory value for the 675 plastic files on hand at the year-end (using a periodic method) (4 marks) b) Calculate the cost of sales and gross profit. (5 marks) c) Draft the trading account using the perpetual inventory system. (3 marks) HMAC200-1-JanJun 2020-SA1-GC-V1-13012020 ii) Karoo solutions, a hardware company, estimates that it will sell 392 drills per year which it will purchase from a distributor in East London. An electric drill costs R 616.00 to purchase and R 44.80 in freight charges each. The company borrows funds at 9% interest rate to finance inventories, Karoo's purchasing agent has calculated that it costs R 1 344.00 to place an order for electric drills and that the handling is R 22.40 for each electric drill. quired: a) Calculate the number of electric drills that Karoo solutions should request in each order. (4 marks) b) Calculate the annual number of orders (2 marks)