Question $3$

$[22$ Marks$]$

You have recently been appointed as the cost manager at Kingdom Stationaries. Kingdom buys and sells a standard type of diary.

The details for the year ended $30$ June $2023$ are as follows:

$1$ Julv $2022$

Opening inventory of $936$ diaries at R$78$ each.

$31$ Julv $2022$

Purchased $312$ diaries at R$125$ each.

$30$ April $2023$

Purchased $390$ diaries at R$120$ each.

During the financial year ended $30$ June $2023,400$ diaries were sold at R$117$ each.

Required:

a$)$ Calculate the value of the closing stock by using the FIFO method.

$(8$ Marks$)$

b$)$ Calculate the gross profit by using the weighted average method.

$(14$ Marks$)$

Use the below format in the next page.