John Ltd starts selling mobile phones in 20X9. Details of purchases in the year are as follows:

Details of sales in the year are as follows:

Required
a. Calculate the cost of sales for the year ended 31 December 20X9 and detail the value of the closing inventory using the FIFO and weighted average inventory valuation cost flow methods (inventory movement sheets are required).
b. Prepare the statement of performance for the year ended 31 December 20X9 based on both valuation methods.

Transcribed Image Text:

Date completed 01/06/X9 05/08/X9 21/10/X9 25/12/X9 Number purchased 100 150 75 100 425 Unit cost of mobile phone £ 150 160 176 180