BMX Ltd,

a bicycle retailer who operates in Johannesburg, ordered 17 500 new bicycle

frames from USA for their exhibition to be held at the Bicycle Fair. The

bicycle frames were received from their supplier on 1 February 2024. The

invoice price of the bicycle frames was R22 500 each (before a trade discount

of 20%) and is payable on 31 March 2024, the year-end of BMX Ltd.

A goods

in transit insurance was taken out for a non-refundable R52 500 deposit for

delivery of the items to Cycle Ltd’s warehouse.

On route

to Johannesburg, an attempt was made to hijack the delivery truck and 250 of

the bicycle frames were irreparably damaged. A claim was submitted to the

insurance company.

The following cash costs regarding the purchase are

applicable:

Additional information:

Inventory is valued

at the lower of cost and net realisable value on the first-in-first-out basis.

REQUIRED: 

What will the cost of inventory be after delivery, per unit (rounded off

to the nearest Rand), at year-end 31 March 2024?: