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Make m Nice adopts the FIFO method of valuing stock as according to the relevant accounting standards. On 1 June 2011 they had stock on hand of 300 units all valued at R25 per unit. The accountant is meticulous on keeping accurate records and she has attached the inventory records for the three month period from June - August 2011 below:
Required:
Calculate and clearly indicate the closing inventory value as well as the gross profit made on sales at the end of the three month period for Make m Nice. Redraft the headings and format given below in order to correctly disclose your workings.
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