A firm has the following transactions with its product R Year 1 Opening stock: nil Buys 10 units at GHc 300 per unit Buys 12 units at GHc 250 per unit Sells 8 units at GHc 400 per unit Buys 6 units at GHc 200 per unit Sells 12 units at GHc 400 per unit Year 2 Buys 10 units at GHc 200 per unit Sells 5 units at GHc 400 per unit Buys 12 units at GHc 150 per unit Sells 25 units at GHc 400 per unit Required: Calculate for both year 1 and year 2 the value of i. Cost of sales Using, separately, the weighted average and the FIFO methods of inventory valuation. Present all workings clearly
A firm has the following transactions with its product R Year 1 Opening stock: nil Buys 10 units at GHc 300 per unit Buys 12 units at GHc 250 per unit Sells 8 units at GHc 400 per unit Buys 6 units at GHc 200 per unit Sells 12 units at GHc 400 per unit Year 2 Buys 10 units at GHc 200 per unit Sells 5 units at GHc 400 per unit Buys 12 units at GHc 150 per unit Sells 25 units at GHc 400 per unit Required: Calculate for both year 1 and year 2 the value of i. Cost of sales Using, separately, the weighted average and the FIFO methods of inventory valuation. Present all workings clearly
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
A firm has the following transactions with its product R
Year 1
Opening stock: nil
Buys 10 units at GHc 300 per unit
Buys 12 units at GHc 250 per unit
Sells 8 units at GHc 400 per unit
Buys 6 units at GHc 200 per unit
Sells 12 units at GHc 400 per unit
Year 2
Buys 10 units at GHc 200 per unit
Sells 5 units at GHc 400 per unit
Buys 12 units at GHc 150 per unit
Sells 25 units at GHc 400 per unit
Required:
Calculate for both year 1 and year 2 the value of
i. Cost of sales
Using, separately, the weighted average and the FIFO methods of
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