Marsden Computing buys end-of-range computers and sells them to the general public at monthly auctions. Its transactions for the past three months have been as follows. (On 1 January it held 20 computers which had cost £550 each.)

Prepare the trading account for the three-month period, assuming

(a) a FIFO inventory valuation method.

(b) a LIFO inventory valuation method.

Transcribed Image Text:

January Bought 300 computers at 550 each and sold 260 for 700 each February Bought 240 computers at 650 each and sold 280 for 700 each March Bought 300 computers at 600 each and sold 290 for 680 each.