An importer deals only in one commodity and has recorded the following transactions for the first six months of the year.

There was an opening balance at’January Ist of 50 units, valued at £12 500.
Required: :

(a) Prepare the stores ledger for the six months using the perpetual inventory system and the FIFO method of pricing issues. (10 marks)

(b) Prepare a trading account to show the gross profit for the period, using the FIFO method of valuation. (2 marks)

(c) Prepare a trading account to show the gross profit for the period, using the LIFO method of valuation.

Transcribed Image Text:

Purchases Date Quantity Purchased Gross Invoice Value Units Quantity Discount February 1st 100 30 000 March 1st 200 60 000 NIL 2.5% May 1st 300 90 000 5% Sales Quantity Sold Units Total Sales Value Date February May 75 350 30 000 175 000