Calculate the following on 28 February 2021, the financial year-end: 4.1.1 Value of the closing stock 4.1.2 Stock turnover rate INFORMATION: The following information relates to the running shoes - NSC Accounting - Question 4 - 2021 - Paper 2

To calculate the closing stock on 28 February 2021:

1. Determine the total value of purchases for the year:

   The cost of each purchase must include carriage, calculated as:

   • Carriage per pair: R25
   • Total pairs purchased: 2 490

   Thus, total carriage = 2 490 * R25 = R62,250

   Next, we calculate the total cost of purchases:

   • Purchases include:
     • 15 April 2020: 560 pairs at R820 = R459,200
     • 20 September 2020: (420 pairs - 60 returns) at R950 = (360 pairs) x R950 = R342,000
     • 5 January 2021: 810 pairs at R950 = R769,500

   Therefore, total cost of purchases:

   $ext{Total Cost} = R459,200 + R342,000 + R769,500 + R62,250 = R2,236,040$

2. Calculate the total goods available for sale:

   $ext{Total Goods Available} = ext{Opening Stock} + ext{Total Purchases}$

   Where Opening Stock is R101,090. Thus:

   $ext{Total Goods Available} = R101,090 + R2,236,040 = R2,337,130$

3. Calculate the value of closing stock:

   Given that 2,216 units sold can be calculated as:

   $ext{Closing Stock} = ext{Total Goods Available} - ext{Total Sales}$

   Total Sales value:

   $2,216 ext{ pairs} ext{ sold at} R1,400 = R3,100$

   Total pairs sold = 2,216

   $ext{Total Cost of Sales} = (206 + 420) = 626 ext{ pairs (before subtracting returns)}$

   Thus, closing stock value can be found by:

   $ext{Closing Stock} = R2,337,130 - R3,100$

   This calculation gives:

   $ext{Closing Stock} = R373,800$