MH Pte Ltd is one of the distributors for Coke. The following information relates to transactions that have affected its stock of Coke during the month of December 20X1: Using the periodic inventory system, compute the ending balance of inventory as at 31 December 20X1 and cost of goods sold during the month of December under the following methods: (i) First-In, First-Out (FIFO) Method (ii) Weighted Average Method (iii) Last-In, First-Out (LIFO) Method Where there is rounding involved in the computation of weighted average cost per unit, round your answer to 3 decimal places. Otherwise, round your final answers to the nearest cent.
MH Pte Ltd is one of the
distributors for Coke. The following information relates to transactions that
have affected its stock of Coke during the month of December 20X1: Using the periodic inventory system, compute the ending balance of inventory
as at 31 December 20X1 and cost of goods sold during the month of December
under the following methods:
(i) First-In, First-Out (FIFO) Method
(ii) Weighted Average Method
(iii) Last-In, First-Out (LIFO) Method
Where there is rounding involved in the computation of weighted average cost
per unit, round your answer to 3 decimal places. Otherwise, round your final
answers to the nearest cent.
The inventory valuation methods value the inventory on different basis like FIFO, LIFO and weighted average. Under periodic inventory method, the inventory is valued at the end of the period not on perpetual basis.
The FIFO method assumes the first purchase to be sold firstly while LIFO considers the latest purchase to be sold firstly.
The weighted average method values the inventory on the basis of weighted average rate.
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