During its first month of operations, a business made purchases and sales as shown in the table below:

All sales were made at £2 each. Required Calculate the profit for the month and the stock value held at the end of the month using:

(a). The FIFO approach to the issue of units for sale, where:

(i). The calculation is carried out at the date of sale; and

(ii). The calculation is carried out at the end of the month without regard for the date of sale; and

(b). The LIFO approach to the issue of units for sale, where:

(i). The calculation is carried out at the date of sale; and

(ii). The calculation is carried out at the end of the month without regard for the date of sale; and

(c). The average-cost approach to the issue of units for sale

Transcribed Image Text:

Number of units purchased Date Unit cost Number of units sold Jan. 5 Jan. 10 100 £1.00 50 Jan. 15 200 £1.10 Jan. 17 150 Jan. 24 300 £1.15 Jan. 30 200