CASE NO#2- INVENTORY VALUATION METHODS TESCO is a British multinational groceries and general merchandise retailer with...

Transcribed Image Text:

CASE NO#2- INVENTORY VALUATION METHODS TESCO is a British multinational groceries and general merchandise retailer with headquarters in Welwyn Garden City, Hertfordshire, England, United Kingdom. It is the third-largest retailer in the world measured by gross revenues. It has shops in seven countries across Asia and Europe. It is the market leader of groceries in the UK, Ireland, Hungary, and Thailand. It provides the following purchases and sales of Merchandise Inventory for the month of June 2022: Date June 2 Details Purchases Units 600 Unit Price OMR 20 12,000 June 5 Purchases 400 30 12,000 June 9 Purchases 200 34 6,800 June 15 Purchases 600 40 24,000 June 22 Purchases 1,000 25 25,000 Total Purchases 2,800 79,800 Date Details Shine Units Unit Price OMR June 7 Sales 600 60 36,000 June 17 Sales 500 80 40,000 June 25 Sales 200 45 9,000 Total Sales 1,300 85,000 Company follows Periodic Inventory System. All purchases and sales are on credit basis. You are required to: a) Compute the cost of goods sold and closing inventory value under FIFO and Weighted Average Method. b) Identify necessary journal entries for the above purchase and sales of Merchandise Inventory under FIFO and Weighted Average method CASE NO#2- INVENTORY VALUATION METHODS TESCO is a British multinational groceries and general merchandise retailer with headquarters in Welwyn Garden City, Hertfordshire, England, United Kingdom. It is the third-largest retailer in the world measured by gross revenues. It has shops in seven countries across Asia and Europe. It is the market leader of groceries in the UK, Ireland, Hungary, and Thailand. It provides the following purchases and sales of Merchandise Inventory for the month of June 2022: Date June 2 Details Purchases Units 600 Unit Price OMR 20 12,000 June 5 Purchases 400 30 12,000 June 9 Purchases 200 34 6,800 June 15 Purchases 600 40 24,000 June 22 Purchases 1,000 25 25,000 Total Purchases 2,800 79,800 Date Details Shine Units Unit Price OMR June 7 Sales 600 60 36,000 June 17 Sales 500 80 40,000 June 25 Sales 200 45 9,000 Total Sales 1,300 85,000 Company follows Periodic Inventory System. All purchases and sales are on credit basis. You are required to: a) Compute the cost of goods sold and closing inventory value under FIFO and Weighted Average Method. b) Identify necessary journal entries for the above purchase and sales of Merchandise Inventory under FIFO and Weighted Average method