Question
You are provided with the following information for Web Inc. for the month ended January, 2023. Web uses theperiodic method for inventory Date Description Quantity
You are provided with the following information for Web Inc. for the month ended January, 2023. Web uses theperiodic method for inventory
Date Description Quantity Unit cost/selling price
June 1 Opening stock 40 40
June 4 Purchases 135 44
June 10 Sales 110 70
June 11 Sales returns 15 70
June 18 Purchases 55 46
June 18 Purchases returns10 46
June 25 Sales 65 75
June 28 Purchases 30 50
(a)Calculate the value of closing inventory using
(i)FIFO (ii) LIFO ( iii) AVCO methods of stock valuation (18 Marks)
(b)Calculate the cost of goods sold using the above methods (3 Marks)
( c)Calculate the gross profit using the above methods (6 Marks)
(d)Calculate gross profit rate under each method (3 Marks)
[Total:30 Marks]
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Government and Not-for-Profit Accounting Concepts and Practices
Authors: Michael H. Granof, Saleha B. Khumawala, Thad D. Calabrese, Daniel L. Smith
8th edition
1119495814, 1119495857, 1119495819, 9781119495819 , 978-1119495857
