FIFO_LIFOeg
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Exercise 1 At 31 May the inventory of a certain material consisted of 80 kilogra $0.60 per kilogram. The receipts and issues of the material in June w Receipts Price Quantity per kg Date Details kg $ June 1 Inventory brought forward from May 31 80 0.6 3 100 1 7 16 200 1.2 23 25 50 1.4 30 Required: Calculate the vale of inventory at 30 June based on: 1) FIFO 2) AVCO Exercise 2 At 30 Sept, Fiford Ltd had an inventory of 100kg of fifolium, which h In October, it made the following purchases and sales of fifolium. Date Purchases Price per kg Sales October kg $ kg 3 40 10 80 5.2 12 75 14 50 15 50 5.24 17 45 22 70 5.28 29 100 5.32 30 70 Required: Calculate the quantity and value of the inventory of fifolium at 31 O method.
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Transcript of FIFO_LIFOeg
FIFO_LIFO eg1Exercise 1At 31 May the inventory of a certain material consisted of 80 kilograms which had cost$0.60 per kilogram. The receipts and issues of the material in June were as follows:ReceiptsPriceIssuesQuantityper kgQuantityDateDetailskg$kgJune1Inventory brought forward from May 31800.631001770162001.22320025501.43080Required:Calculate the vale of inventory at 30 June based on:1) FIFO2) AVCOExercise 2At 30 Sept, Fiford Ltd had an inventory of 100kg of fifolium, which had cost $5 per kilogram. In October, it made the following purchases and sales of fifolium.DatePurchasesPrice per kgSalesOctoberkg$kg34010805.21275145015505.24174522705.28291005.323070Required:Calculate the quantity and value of the inventory of fifolium at 31 October using the FIFOmethod.Exercise 3A.V Co. had a stock of 200 digital hammers at 31 May. The hammers were valued at $5 each.Transactions in digital hammers in the month of June were as follows:Price perPurchaseshammerSalesDate(QTY)$(QTY)June41005.21075131005.352015026805.43090Required:Calculate the closing inventory of digital hammers at 30 June showing quantity and totalvalue based on weighted average cost.Exercise 4The profit made over the whole life of a business is not affected by the choice of methodof valuing inventory.Quad Ltd began business in year 1 and stopped trading at the end of year 4. The followinginformation is given for each of the four years.Year 1Year 2Year 3Year 4$$$$Sales100014001600800Purchases600800700400Closing inventory:FIFO80100900AVCO7090800Required:Prepare the Trading Accounts under the FIFO and AVCO methods of inventory valuation.
exercise 4Trading Account (using FIFO)Year 1Year 2Year 3Year 4$$$$$$$$Sales100014001600800Less: COSOpening stock08010090Purchases600800700400Closing stock-80-100-900TOTAL520780710490GROSS PROFITGross Profit4806208903102300
Trading Account (using AVCO)Year 1Year 2Year 3Year 4$$$$$$$$Sales100014001600800Less: COSOpening stock0709080Purchases600800700400Closing stock-70-90-800TOTAL530780710480GROSS PROFITGross Profit4706208903202300
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