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Your friend owns a small store that sells pet food. He suspects that dog food is being stolen from his store. The store is uninsured. He approaches you, an accounting student, and tells you that he had no dog food in his store at the start of the current financial year but during the year the store purchased 50 bags at R50 each and then a further 50 bags at R75 each. He indicates that during the financial year 60 bags had been sold to customers at R100 each and 2 bags were donated to Animal Welfare. At year-end, 31 bags of dog food were on hand. The store uses the weighted average costing method.
REQUIRED:
Question 1: Assist your friend by calculating if there is an inventory loss. Explain to him/her how an inventory
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