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 value of the closing stock, we will first find the total cost of stock available for sale and then subtract the cost of goods sold.

1. Find Total Purchases:

   • Total purchases during the year:
     • From the purchases table:
       • 15 April 2020: R459 200
       • 20 September 2020: R378 000
       • 5 January 2021: R769 500
   • Total purchases = R459 200 + R378 000 + R769 500 = R1 606 700

2. Calculate Cost of Sales:

   • Sales Revenue:
     • 2,216 units sold at R1,400 each: 2,216 * R1,400 = R3,100,400.
   • We also need to calculate the total cost of the units sold using the weighted-average method.
   • Total Cost of Opening Stock = R101090 for 206 pairs.
   • Calculate average cost per unit: [ ext{Average Cost per Unit} = \frac{Total Value of Stock}{Total Quantity} = \frac{R3,018,250}{420} = R7,210.71 ]
   • Total closing stock value: [ \text{Closing Stock} = Total Cost of Goods Available - Cost of Goods Sold ]
   • Thus; [ Closing Stock = R1,606,700 + R101090 - (R7,210.71 \times 2,216) = R373,800 ]