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Question 2 Cicero Supplies Ltd uses a system of perpetual inventory. Regarding the migration of one of its stock lines, it has provided the following information: Month Receipt Opening 200 @ 8.50 Issues Balance 200 @ $8.00 January February March 300 150 @ $9.00 April May June 150 200 @ $9.15 July 250 Required: (a) Calculate the closing stock value at the end of June under each of the stock valuation methods of FIFO, LIFO and AVCO. Work to 2 decimal places. (b) Identify one advantage and one disadvantage for each of the valuation methods: FIFO, LIFO and AVCO.

Cornerstones of Financial Accounting

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter6: Cost Of Goods Sold And Inventory

Section: Chapter Questions

Problem 38BE: Inventory Analysis Callahan Company reported the following information for the current year....

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Question 2
Cicero Supplies Ltd uses a system of perpetual inventory. Regarding the migration of one
of its stock lines, it has provided the following information:
Month
Receipt
Opening
200 @ 8.50
Issues
Balance
200 @ $8.00
January
February
March
300
150 @ $9.00
April
May
June
150
200 @ $9.15
|July
250
Required:
(a) Calculate the closing stock value at the end of June under each of the stock valuation
methods of FIFO, LIFO and AVCO. Work to 2 decimal places.
(b) Identify one advantage and one disadvantage for each of the valuation methods:
FIFO, LIFO and AVCO.

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