Determine the cost of sales and cost inventory at 31 December using the following inventory methods

Subject: Business    / Accounting

QUESTION 1

Part A

During December 2016 Qosqo Ltd sold 1 300 units of its product for $5 525. A periodic inventory system isused for valuing inventories, and the physical physical count on 31 December verified that 700 units wereon hand. The following information relates to the inventory of Qosqo Ltd during December.

Quantity Unit cost Total costs

01/12 Beginning inventory 700 $3.00 $2100

10/12 Purchase 500 $3.15 $1575

15/12 Purchase 300 $3.30 $990

23/12 Purchase 500 $3.50 $1750

2000 $3.00 $6415

Required (show all workings):

Determine the cost of sales and cost inventory at 31 December using the following inventory methods (show all workings):

1. Specific identification, assuming that 400 units were sold from the beginning inventory, 400 units were sold from the first purchase, 200 units were sold fromthe 15 December purchase, and the remainder from the 23 December purchase

2.FIFO

3.LIFO

4.Weighted Average


 

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