A shop stocks winter coats which sell at £55 each. To avoid overstocking and because of limited space, the deliveries from four manufacturers, at differing prices , are made to the shop on a weekly basis at opening time on Monday mornings. During October the deliveries and sales of the coats were as shown below and there was an opening stock of 10 coats which had been purchased in September at £29 each

Trading accounts are prepared monthly and from the information g1ven above you are required to :
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(a) prepare stock records for the transactions based on the three methods of pricing issues listed below:
(i) FIFO;
(ii) LIFO ;
(iii) weighted average calculated at the end of the month (work to two decimal places of £1 );

(b) recommend which method you would advise the shop managment to use and why;

(c) show the gross margins to the nearest £1 and as a percentage of the sales turnover for each of the three methods of pricing issues;

(d) comment on the type of information you would require to determine whether the gross margin figures are good , poor or indifferent

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Coats bought Number of Week no. Number Cost each () coats sold 1234 2 4 28480 30 30 2323 30 15 33 29 33 35 35 39