Purchases and sales of a certain product for the first seven days of June 2013 are as follows:

\section*{Required}

(a) Determine the cost of goods sold for the week and closing inventory at the end of the week under the FIFO, LIFO and weighted average methods of inventory valuation, assuming a periodic system of inventory control.
(1) Determine the cost of goods sold for the week and closing inventory at the end of the week under the FIFO, LIFO and weighted average methods of inventory valuation, assuming a perpetual system of inventory control.

(c) Discuss the advantages and/or disadvantages of FIFO, LIFO and the weighted average method.

(d) If a company maintains a perpetual inventory control system, is it necessary to have an annual stock take?

Transcribed Image Text:

Day 1357 Purchases Sales Purchases Sales 20 units @ 5 each 15 units 30 units @ 6 each 10 units