4.2 INVENTORY VALUATION Clearview Electronics is owned by Sipho Cossa. The business sells two models of printers, Hawi and Yama. The specific identification method is used to value their stock. Their financial year ended on 28 February 2023. Good internal controls ensured that there were no stock shortages. REQUIRED: 4.2.1 4.2.2 Calculate the value of the closing stock on 28 February 2023. Use the specific identification method. (6) Calculate how long (in days) it will take to sell the closing stock of the Hawi printers. (4) 4.2.3 Explain whether Sipho should be concerned about the stockholding periods of the Hawi and Yama printers. Quote figures. Give possible reasons for the difference in the holding periods of the two models. Copyright reserved INFORMATION: Stock records Model Units purchased Cost price Total Opening stock Hawi 90 R3 800 R342 000 835 R3 969 950 Purchases Hawi 340 R3 800 R1 292 000 Yama 495 R5 410 R2 677 950 Returns Hawi 5 R3 800 R19 000 Sale of printers and stock holding periods: Model Hawi Yama Units sold 300 430 OXIO Selling price Stockholding period R5 700 ? R7 300 55,2 days (6)
