Question 1Comvita follows the period inventory accounting. During the reporting period ended 31st December 2018, Comvita have sold 250, 000 units of Manuka honey with a sales price of $100. Analyse how inventory valuation methods impact on financial statement analysis of Comvita. The Comvita management has asked you to recommend from three inventory valuation methodse. FIFO, LIFO and weighted average for their cost of goods sold. The management have provided you with the following data,-(LO2) Inventory at 1 Jan 2018 is 90,000 units @ $ 50Inventory at 30 March 2018 is 110,000 units @ 52Inventory at 1st July 2018 is 55,000 units @ 60Inventory at 1st October is 65,000 @ 70(LO2. Apply accounting tools and techniques to analyse and resolve complex situations within an organisation).Note: Your recommendation should be supported with the evaluation of cost of goods sold calculation for each inventory methods .

Name: Question 1Comvita follows the period inventory accounting. During the
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Description: Question 1Comvita follows the period inventory accounting. During the reporting period ended 31st December 2018, Comvita have sold 250, 000 units of Manuka honey with a sales price of $100. Analyse how inventory valuation methods impact on financia

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Answered: FIFO, LIFO and weighted average for…

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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Comvita follows the period inventory accounting. During the reporting period ended 31^st December 2018, Comvita have sold 250, 000 units of Manuka honey with a sales price of $100.

Analyse how inventory valuation methods impact on financial statement analysis of Comvita. The Comvita management has asked you to recommend from three inventory valuation methodse. FIFO, LIFO and weighted average for their cost of goods sold. The management have provided you with the following data,-(LO2)

Inventory at 1 Jan 2018 is 90,000 units @ $ 50
Inventory at 30 March 2018 is 110,000 units @ 52
Inventory at 1^st July 2018 is 55,000 units @ 60
Inventory at 1^st October is 65,000 @ 70

(LO2. Apply accounting tools and techniques to analyse and resolve complex situations within an organisation).

Note: Your recommendation should be supported with the evaluation of cost of goods sold calculation for each inventory methods .

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