QUESTION 1: COMPANY FINANCIAL STATEMENTS The following information was taken from the accounting records of Violet Limited. The financial year ended on 28 February 2025. The company trades with women’s and men’s clothing.

Here's how to calculate the correct value of the closing stock using the weighted-average method: Step 1: Calculate the total units available for sale. Total units available = Opening stock units + Purchased units - Returned units Total units available = 4\,500 + (7\,500 + 1\,500 + 820) - 520 Total units available = 4\,500 + 9\,820 - 520 Total units available = 13\,800 units Step 2: Calculate the total cost of units available for sale. Total cost available = Opening stock value + Total purchase value - Value of returned units Total cost available = (4\,500 × R50) + (7\,500 × R55 + 1\,500 × R58 + 820 × R60) - (520 × R50) Total cost available = R225\,000 + (R412\,500 + R87\,000 + R49\,200) - R26\,000 Total cost available = R225\,000 + R548\,700 - R26\,000 Total cost available = R747\,700 Step 3: Calculate the weighted-average cost per unit. Weighted-average cost per unit = Total cost availableTotal units available Weighted-average cost per unit = (R747\,700)/(13\,800 units) Weighted-average cost per unit ≈ R54.18116 per unit Step 4: Calculate the value of the closing stock. Value of closing stock = Closing stock units × Weighted-average cost per unit Value of closing stock = 4\,400 units × R54.18116 per unit Value of closing stock = R238\,400 That's 2 down. 3 left today — send the next one.