Study the information provided below and calculate the following:

5.2.1 Gross profit for the year ended 31 December 2022 using the weighted average cost method (with the average price per unit expressed to the nearest cent).

Answer must include the value of closing inventory disclosed in the format of the statement of comprehensive income.

5.2.2 Value of closing inventory if the FIFO method is used.

INFORMATION Riva Stores had the following inventory of rice on 01 January 2022, the start of the financial year.

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Quantity 120 bags 80 bags Unit purchase price R180 R188 Carriage on purchases per unit R20 R20 During 2022 the following transactions took place: 500 bags were purchased at R200 each on 30 April 2022. Carriage amounted to R20 per unit. 100 bags that were purchased on 30 April 2022 were returned to the supplier one day later. No refund could be obtained on the carriage. 400 bags were purchased at R240 each on 30 September 2022. Carriage amounted to R24 per unit. Note: Carriage on purchases are not included in the purchase prices. Sales: During the year 800 bags were sold. 500 bags were sold for R320 each and the balance was sold at R340 each. Quantity 120 bags 80 bags Unit purchase price R180 R188 Carriage on purchases per unit R20 R20 During 2022 the following transactions took place: 500 bags were purchased at R200 each on 30 April 2022. Carriage amounted to R20 per unit. 100 bags that were purchased on 30 April 2022 were returned to the supplier one day later. No refund could be obtained on the carriage. 400 bags were purchased at R240 each on 30 September 2022. Carriage amounted to R24 per unit. Note: Carriage on purchases are not included in the purchase prices. Sales: During the year 800 bags were sold. 500 bags were sold for R320 each and the balance was sold at R340 each.

Answer rating: 100% (QA)

To calculate the gross profit for the year ended 31 December 2022 using the weighted average cost me... View the full answer