Complete the Statement of Financial Position as at 28 February 2023.

To calculate the value of closing stock using the FIFO method, we need to determine the actual number of units in closing stock and then value them based on the most recent purchase prices. Step 1: Calculate the actual number of units in closing stock. The physical stock count on 28 February 2023 was 1 009 bicycles. However, 40 bicycles purchased in January 2023 were returned to the supplier. These returned units are no longer part of the stock. Number of units in closing stock = Physical count - Units returned Number of units in closing stock = 1009 - 40 = 969 units Step 2: Apply the FIFO method to value the closing stock. The First-In, First-Out (FIFO) method assumes that the first goods purchased are the first ones sold. Therefore, the closing stock consists of the most recently purchased units. We will take the 969 units from the latest purchases backwards. From January 2023 purchases: Original units purchased: 740 Less: Units returned: 40 Net units available from January 2023: 740 - 40 = 700 units Value per unit: R2 100 Value of these units: 700 units × R2 100/unit = R1 470 000 Units still needed for closing stock: 969 - 700 = 269 units. From November 2022 purchases: Available units from November 2022: 2 215 We need 269 units from this batch. Value per unit: R2 030 Value of these units: 269 units × R2 030/unit = R546 070 Step 3: Calculate the total value of closing stock. The total value of closing stock is the sum of the values from the latest purchases. Total value of closing stock = Value from January 2023 + Value from November 2022 Total value of closing stock = R1 470 000 + R546 070 = R2 016 070 The value of the closing stock of bicycles is R2 016 070. Send me the next one 📸