QUESTION $2(30$ Marks$)$

Gabex is a retailer buying and selling leather handbags. The following information relates

to the month ended $29$ February $2024.$

Date No$.$ of units Cost per unit

$1$ Feb Opening inventory $45$ R$80\mathrm{.}24$

$5$ Feb Credit purchase $75$ R$88\mathrm{.}50$

$8$ Feb Purchase return $8$ R$88\mathrm{.}50$

$25$ Feb Credit purchase $38$ R$82\mathrm{.}60$

On $29$ Feb $2024,88$ units were on hand. The net realisable value of these items was

R$82\mathrm{.}60$ per unit.

Additional Information:

$$ The only sale during the month of Feb $2024$ was a sale of $62$ units on $15$ Feb $2024.$

Required;

a$)(3$ marks$)$

Determine the cost of closing inventory on the FIFO cost allocation method.

b$)(7$ marks$)$

Prepare the cost of sales and inventory accounts in the General Ledger for the

month ended $29$ Feb $2024,$ using the FIFO cost allocation method, assuming the

periodic recording system was used. $($Adjusting and closing entries should be

included$)$

c$)(10$ marks$)$

Prepare the cost of sales and inventory accounts in the General Ledger for the

month ended $30$ Feb $2024,$ using the FIFO cost allocation method, assuming the

perpetual recording system was used. $($Adjusting and closing entries should be

included$)$QUESTION $2$

$(30$ Marks$)$

Gabex is a retailer buying and selling leather handbags. The following information relates

to the month ended $29$ February $2024.$

On $29$ Feb $2024,88$ units were on hand. The net realisable value of these items was

R$82\mathrm{.}60$ per unit.

Additional Information:

The only sale during the month of Feb $2024$ was a sale of $62$ units on $15$ Feb $2024.$

Required;

a$)$

$(3$ marks$)$

Determine the cost of closing inventory on the FIFO cost allocation method.

b$)$

$(7$ marks$)$

Prepare the cost of sales and inventory accounts in the General Ledger for the

month ended $29$ Feb $2024,$ using the FIFO cost allocation method, assuming the

periodic recording system was used. $($Adjusting and closing entries should be

included$)$

c$)$

Prepare the cost of sales and inventory accounts in the General Ledger for the

month ended $30$ Feb $2024,$ using the FIFO cost allocation method, assuming the

perpetual recording system was used. $($Adjusting and closing entries should be

included$)$

d$)$

Prepare the cost of sales and inventory accounts in the General Ledger for the

month ended $29$ Feb $2024,$ using the weighted average cost allocation method,

assuming the perpetual recording system was used. $($Adjusting and closing entries

should be included$)$

Round off answers to the nearest rand.

d$)(10$ marks$)$

Prepare the cost of sales and inventory accounts in the General Ledger for the

month ended $29$ Feb $2024,$ using the weighted average cost allocation method,

assuming the perpetual recording system was used. $($Adjusting and closing entries

should be included$)$

Round off answers to the nearest rand.