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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 Buys 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 Closing inventory Sales Cost of sales Gross profit   Using only 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 Buys 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 Closing inventory Sales Cost of sales Gross profit   Using only the FIFO methods of inventory valuation. Present all workings clearly

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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

Buys 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

  • Closing inventory
  • Sales
  • Cost of sales
  • Gross profit

 

Using only the FIFO methods of inventory valuation. Present all workings clearly

 

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