Al Wardi marketing company purchases mobiles directly from manufacturers and sells it to small retailers. The following transactions occurred during 2020: January, 12th: 75 mobiles on hand @ RO 30 each March, 21st: 80 mobiles purchased @ RO 40 each. May, 14th: 120 mobiles purchased @ RO 50 each. July, 10th: 80 mobiles purchased @ RO 60 each. September 16th: 50 mobiles purchased @ RO 80 each During 2020 Al Wardi company sold 300 mobiles. Required: Compute the Cost of Inventory sold and the value of closing inventory during 2020 under the following cost inventory methods. (a). First in, first out (FIFO) (b). Last in, first out (LIFO) (c) Average cost method
Al Wardi marketing company purchases mobiles directly from manufacturers and sells it to small retailers. The following transactions occurred during 2020: January, 12th: 75 mobiles on hand @ RO 30 each March, 21st: 80 mobiles purchased @ RO 40 each. May, 14th: 120 mobiles purchased @ RO 50 each. July, 10th: 80 mobiles purchased @ RO 60 each. September 16th: 50 mobiles purchased @ RO 80 each During 2020 Al Wardi company sold 300 mobiles. Required: Compute the Cost of Inventory sold and the value of closing inventory during 2020 under the following cost inventory methods. (a). First in, first out (FIFO) (b). Last in, first out (LIFO) (c) Average cost method
Century 21 Accounting Multicolumn Journal
11th Edition
ISBN:9781337679503
Author:Gilbertson
Publisher:Gilbertson
Chapter20: Accounting For Inventory
Section: Chapter Questions
Problem 1MP
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2. Al Wardi marketing company purchases mobiles directly from manufacturers and sells it to small retailers. The following transactions occurred during 2020:
January, 12th: 75 mobiles on hand @ RO 30 each
March, 21st: 80 mobiles purchased @ RO 40 each.
May, 14th: 120 mobiles purchased @ RO 50 each.
July, 10th: 80 mobiles purchased @ RO 60 each.
September 16th: 50 mobiles purchased @ RO 80 each
During 2020 Al Wardi company sold 300 mobiles.
Required:
Compute the Cost of Inventory sold and the value of closing inventory during 2020 under the following cost inventory methods.
(a). First in, first out (FIFO)
(b). Last in, first out (LIFO)
(c) Average cost method
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