Refer to Information B (ii) - NSC Accounting - Question 1 - 2023 - Paper 1

To calculate the value of closing stock using the FIFO (First In, First Out) method, we need to consider the oldest inventory first.

1. Identify the quantities and costs of the bicycles:

   • 740 units at R2 100
   • 309 units at R2 020

2. Since we have a total of 1,470 units and we want to find the cost of the closing stock:

   • The closing stock consists of 1,109 units sold, hence compute the remaining closing stock:

   Opening Stock: 740 units Purchases: 309 units

   Total Units Available: 740 + 309 = 1,049 units

3. Calculate the closing stock:

   • Starting with the oldest units:
     • 740 units left from the first batch: 740 imes R2 100 = R1 554 000
     • Remaining: 1,470 (available units) - 1,109 (sold units) = 361 units left.

   Therefore, to find the total value of the bicycles remaining in closing stock:

   Cost of closing stock = (740 imes R2 100) + (361 imes R2 020)

   Calculate:

   Closing stock value = R1 554 000 + R729,620 = R2 283,620.

In conclusion, the value of closing stock using the FIFO method is R2 283,620.