During its first month of operations, a business made purchases and sales as shown in the table below:
|
Date |
Number of nits purchased |
Unit cost |
Number of units sold |
|
Jan. 5 |
100 |
$1.00 |
|
|
Jan. 10 |
50 |
||
|
Jan. 15 |
200 |
$1.10 |
|
|
Jan. 17 |
150 |
||
|
Jan. 24 |
300 |
$1.15 |
|
|
Jan. 30 |
200 |
All sales were made at £2 each.
Required Calculate the profit for the month and the stock value held at the end of the month using:
(a) The FIFO approach to the issue of units for sale, where:
(i) The calculation is carried out at the date of sale; and
(ii) The calculation is carried out at the end of the month without regard for the date of sale; and
(b) the LIFO approach to the issue of units for sale, where:
(i) The calculation is carried out at the date of sale; and
(ii) The calculation is carried out at the end of the month without regard for the date of sale; and
(c) The average cost approach to the issue of units for sale, making the calculation at the end of the month without regard for the date of sale.