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You are required to determine the value of the company’s inventory using: (a) First In First Out (b) weighted average

You are required to determine the value of the company’s inventory using: (a) First In First Out (b) weighted average

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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Dumsor Limited is a newly established international trading company. It commenced its operation in 2015. Dumsor Limited imports goods from China and sells in the local market. 

Listed are the purchases and sales made by the entity during the year 2015:  

Purchases:

January 2015: 100,000 units @ Ghc25 each 

March 2015: 15,000 units @ Ghc30 each 

September 2015: 20,000 units @ Ghc35 each 

Sales 

May 2015: 15,000 units 

November 2015: 20,000 units.

You are required to determine the value of the company’s inventory using:

(a) First In First Out (b) weighted average

 

 

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