The following payments and costs were incurred in respect of inventories during February 2023:

• 1 000 units purchased once-off at R57.50 each (including VAT of 15%)
• R1 000 quantity discount received in total for purchasing more than 750 units
• Import duties of R300
• Shipping costs of R450
• Railage costs of R200 from Durban to Pretoria

Source: Adapted from Daniels, J.C. 2023