Geronimo Ltd is a builders merchant. On 1 September the business had, as part of its inventories, 20 tonnes of sand at a cost of 18 per tonne and, therefore, at a total cost of 360.

During the first week in September, the business bought the following amounts of sand:

	Tonnes	Cost per tonne ()
2 September	48	20
4 September	15	24
6 September	10	25

On 7 September, the business sold 60 tonnes of sand to a local builder.

(a) Calculate the cost of goods sold and the closing inventory using the following inventory valuation methods: (i) First in, first out; (ii) Last in, first out; (iii) Weighted average cost.

(b) What do you observe and why?

FIFO: Closing Inventory:

FIFO: Cost of goods sold:

LIFO: Closing Inventory:

LIFO: Cost of goods sold:

AVCO: Closing Inventory:

AVCO: Cost of goods sold:

What do you observe and why?