Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please provide me answer fot marked RED Dot questions Task 3: Inventory valuation f) DIBS trading recorded the following data of purchases and sales for

image text in transcribed

image text in transcribed

please provide me answer fot marked RED Dot questions

Task 3: Inventory valuation f) DIBS trading recorded the following data of purchases and sales for the month of January 2020. Date Purchases January Quantity Price per unit No. (RM) 1 1,200 1.00 4 1,000 1.05 sales Quantity Price per No. unit (RM) 6 800 1.70 12 600 1.10 15 600 1.90 18 900 1.20 1,100 2.00 20 25 800 1.25 PAGE NO. 14 OF 18 28 1,300 2.00 29 700 1.30 31 400 2.05 You are appointed as a new manager in finance department. There is new product line introduced in DIBS and the HQ requested you to identify which of inventory valuation is the best method to used by DIBS trading. You are planning to respond to the HQ queries by providing the following computation:- i. FIFO (first in, first out) (30 marks) ii. AVCO (weighted average cost). (15 marks) iii. Compare the GROSS PROFIT derived from FIFO method and AVCO method (5 marks) Suggest the stock valuation method to be used by DIBS trading. (1 marks) b) Identify the advantages and disadvantages of the method suggested in (g)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals Of Financial Accounting St Louis Community College At Meramac

Authors: Phillips/Libby/Libby

3rd Edition

007745412X, 978-0077454128

More Books

Students also viewed these Accounting questions

Question

Define Management by exception

Answered: 1 week ago

Question

Explain the importance of staffing in business organisations

Answered: 1 week ago

Question

What are the types of forms of communication ?

Answered: 1 week ago