Sparkling enterprises provides sparkling water to various guesthouses in the Gauteng region. Sparkling only provides spa

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Sparkling Enterprises Provides Sparkling Water To Various Guesthouses In The Gauteng Region Sparkling Only Provides Spa 1 (45.75 KiB) Viewed 52 times

Sparkling enterprises provides sparkling water to various guesthouses in the Gauteng region. Sparkling only provides sparkling water in 500ml bottles. On 1 February 2017 there were 6 500 bottles with a selling price of R10 each on hand. (A mark-up of 25% on cost were applicable on the bottles). Sparkling enterprises uses the periodic inventory system and makes use of the weighted average cost method in order to value the inventory. The following transactions took place during February 2017: Date Transactions 5 Purchased 2 000 bottles @ R7.50 per bottle 8 Sold 6 000 bottles @ R10 per bottle 15 Purchased 4 000 bottles @ R7.80 per bottle 20 Purchased 2 000 bottles @ R 8.00 per bottle, total delivery cost of R500 was incurred in order to ensure timely delivery 24 Sold 8 000 bottles @ R10 per bottle 5 28 Purchased 4 000 bottles @ R8.00 per bottle Required: Q.7.1 Calculate the following: Q.7.1.1 The value of the closing inventory on 28 February 2017; Q.7.1.2 The sales revenue for February 2017; 0.7.1.3 The cost of sales for February 2017; Q.7.1.4 The gross profit for February 2017 (14) (2) (2) (2)