QUESTION $2(15$ Marks$)$

The newly appointed accountant of Ringwood Traders asked you to help him with the

calculation of the following transaction:

Ringwood bought steel $(10000$ units$)$ from Unitrans and received an invoice for R$540$

$000.$ Ringwood paid cash in order to make use of the $7\%$ cash discount offered by the

supplier. The steel was transported by rail for which Ringwood Traders paid R$35$

$000.$Costs to insure the steel while in transit amounted to R$1000.$ On inspection of the

steel by the foreman, it was found that $1000$ units amounting to R$54000($before cash

discount$)$ were damaged. Following negotiations with Unitrans, it was agreed that these

steel units will be returned to the supplier.

During the same month, Ringwood sold $4000$ units to Unilever Dealers on account. A

$30\%$ mark$-$up on cost is applicable. It may be assumed that Ringwood Traders and

Unitrans both make use of the perpetual inventory system.

REQUIRED $$ QUESTION $2$

$1.$ Calculate the cost per unit of the steel inventory.

$$ Show all calculations.

$$ Round off to the nearest Rand.

$2.$ Prepare the applicable general journal entry for the original payment

made by Ringwood Traders to Unitrans.

$$ Journal narrations are not required.

$3.$ Prepare the applicable general journal entry for the $4000$ units sold to

Unilver.