Assume that entity Es beginning inventory on 1 March 2010 is nil. All inventory is finished goods

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Assume that entity E’s beginning inventory on 1 March 2010 is nil. All inventory is finished goods and is of the same type. Details of the inventory received and sent out by entity E are shown below:

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Assuming that on 25 March 2010 the entity sold 5 units, determine the value of its ending inventory on 31 March 2010 using:

(a) FIFO cost formula.

(b) AVCO formula.

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Advanced Financial Accounting An International Approach

ISBN: 9780273712749

1st Edition

Authors: Jagdish Kothari, Elisabetta Barone

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Question Posted: Jan 28, 2024 12:02 AM

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Assume that entity Es beginning inventory on 1 March 2010 is nil. All inventory is finished goods

Question:

Batch 1 received on 1 March 2010 Batch 2 received on 15 March 2010 Quantity (unit) 24 Cost per unit 6.00 9.00

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Advanced Financial Accounting An International Approach

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