Question
Task 2 (Inventory) The table below contains information taken from the company's inventory system BCD ehf. for item number XY1234 in December 2020. Inventories were
Task 2 (Inventory)
The table below contains information taken from the company's inventory system BCD ehf. for item number XY1234 in December 2020. Inventories were counted on 2 January 2021 and it was then discovered that 520 units were in stock. Note that the position on December 1st shows stocks that were present at the beginning of the season.
The following needs to be resolved;
Calculate inventory value, cost price and margin. Calculate items 2 and 3 both m.v. inventory accounting (perpetual system) and inventory (periodic system) Specific identification price, where the final inventory consists of 100 units of initial inventory and 225 units from purchases made on 26 April. First-in, first-out (FIFO) Average cost
It is not necessary to show entries in the accounts, but all calculations must be shown.
day | purchased unit | purchase price | units sold | sale price | ||
01/12/2020 | 210 | 475 | ||||
04/12/2020 | 500 | 490 | ||||
05/12/2020 | 450 | 750 | ||||
11/12/2020 | 350 | 510 | ||||
12/12/2020 | 325 | 750 | ||||
16/12/2020 | 600 | 515 | ||||
20/12/2020 | 800 | 540 | ||||
22/12/2020 | 1.475 | 825 | ||||
29/12/2020 | 150 | 775 | ||||
30/12/2020 | 500 | 515 | ||||
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