in this question for the cpp opening stock why we didnt mulply it with the indexes ? i need a good reson because mr tought as to multply it with index

CASE 2: From the following information calculate historical and CPP adjusted cost of goods sold assuming FIFO method Opening stock 250000 (price index 100) Purchase 1 150000 (price index 125) Purchase II 160000 (price index 150) Closing stock 185000 (price index 200) Anonymous Historical COGS assuming FIFO: Opening Stock + Purchases - Closing Stock 250000+150000+160000-185000 = 375000 CPP adjusted COGS assuming FIFO: Opening Stock + Purchases - Closing Stock 250000 + 150000*125/100 + 160000*150/100 - 160000*200/150 - 25000*200/125 = 677500-213333- 40000 = 424167 O Comments Was this answer helpful? B 0