On 1 January, a company had an opening inventory of 100 units which cost at Rs.50 each. During the year, it made following purchases and sales. Purchases: 5th April- 300 units at Rs.60 each, 14th July-500 units at Rs.70 each, 22nd Oct-200 units at Rs.80 each. Sales: 9th May 200 units, 25th July 200 units, 23rd November 200 units, 12th December 200 units. Required: Based on perpetual inventory system, calculate the following. In FIFO method, determine cost of goods sold and value of closing stock. In Weighted average method, determine cost of goods sold and value of closing stock. Note: The weighted average method calculates a new average cost after each purchase
On 1 January, a company had an opening inventory of 100 units which cost at Rs.50 each. During the year, it made following purchases and sales. Purchases: 5th April- 300 units at Rs.60 each, 14th July-500 units at Rs.70 each, 22nd Oct-200 units at Rs.80 each. Sales: 9th May 200 units, 25th July 200 units, 23rd November 200 units, 12th December 200 units. Required: Based on perpetual inventory system, calculate the following. In FIFO method, determine cost of goods sold and value of closing stock. In Weighted average method, determine cost of goods sold and value of closing stock. Note: The weighted average method calculates a new average cost after each purchase
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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On 1 January, a company had an opening inventory of 100 units which cost at Rs.50 each. During the year, it made following purchases and sales.
Purchases:
5th April- 300 units at Rs.60 each, 14th July-500 units at Rs.70 each, 22nd Oct-200 units at Rs.80 each.
Sales:
9th May 200 units, 25th July 200 units, 23rd November 200 units, 12th December 200 units.
Required: Based on perpetual inventory system, calculate the following.
- In FIFO method, determine cost of goods sold and value of closing stock.
- In Weighted average method, determine cost of goods sold and value of closing stock.
Note: The weighted average method calculates a new average cost after each purchase
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