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For the six months period ended October 31, 2017. CHRIST IS THE ANSWER, an importer and distributor of machine guns, had the following transactions in
For the six months period ended October 31, 2017. CHRIST IS THE ANSWER, an importer and distributor of machine guns, had the following transactions in his records: There was an opening balance of 900 units which had a value of GH19,800.00 Bought Quantity Date May 3 June 15 August 30 Units 750 1,000 Cost per unit GH 20.50 25.00 29.00 2,000 Sold Quantity Date Units Price per unit GH July 5 1,250 32.00 September 18 1,750 35.00 October 27 1,500 37.00 From the information given above and using the Weighted Average method for pricing issues, you are required to: i. Show the stores ledger records including the closing stock balance and stock valuation. [15 marks] ii. Prepare the trading accounts for the period to show the gross profit for the method of pricing issues used in question i. [8 marks] iii. How is inventory valued? [2 marks]
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