Quality Hardware Pty Ltd provides the following information regarding purchases of inventory item number SA238 for...

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Quality Hardware Pty Ltd provides the following information regarding purchases of inventory item number SA238 for October 2021. Quality Hardware uses the periodic inventory system to record inventory transactions. Date 1 October Inventory on hand Count 600 Unit cost $5.50 Total cost $3,300 6 October 14 October 24 October 28 October Purchases Purchases Purchases Purchases 240 280 620 70 $6.40 $5.90 $6.20 $6.50 $1,536 $1,652 $3,844 $455 An inventory count on 31 October 2021 revealed 720 units on hand. Required: Calculate the: A. Cost of stock on hand at 31 October 2021 using the First-In-First-Out (FIFO) cost flow method. marks) B. Cost of goods sold for October 2021 using the Weighted Average Cost method. (4 marks) C. What circumstances would cause Quality Hardware Pty Ltd to re-value the items of inventory on hand at 31 October 2021? (1.5 marks) D. How will the re-valuation of the inventory on hand impact on the profit? (1.5 marks) Quality Hardware Pty Ltd provides the following information regarding purchases of inventory item number SA238 for October 2021. Quality Hardware uses the periodic inventory system to record inventory transactions. Date 1 October Inventory on hand Count 600 Unit cost $5.50 Total cost $3,300 6 October 14 October 24 October 28 October Purchases Purchases Purchases Purchases 240 280 620 70 $6.40 $5.90 $6.20 $6.50 $1,536 $1,652 $3,844 $455 An inventory count on 31 October 2021 revealed 720 units on hand. Required: Calculate the: A. Cost of stock on hand at 31 October 2021 using the First-In-First-Out (FIFO) cost flow method. marks) B. Cost of goods sold for October 2021 using the Weighted Average Cost method. (4 marks) C. What circumstances would cause Quality Hardware Pty Ltd to re-value the items of inventory on hand at 31 October 2021? (1.5 marks) D. How will the re-valuation of the inventory on hand impact on the profit? (1.5 marks)

Answer rating: 100% (QA)

A Cost of stock on hand at 31 October 2021 using the FirstInFirstOut FIFO cost flow method To calculate the cost of stock on hand using the FIFO method we assume that the first units purchased are the ... View the full answer