During its first month of operations, a business made purchases and sales as shown in the table below All sales were made at pound 2 each Required Calculate the profit for the month and the stock value held at the end of the month using (a) The FIFO approach (b) The LIFO approach Number of units Nu...

a FIFO Date Description No of units CostPrice Unit Total 5Jan Purchased 10000 100 10000 ...

During its first month of operations, a business made purchases and sales as shown in the table

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During its first month of operations, a business made purchases and sales as shown in the table below:

Number of units Number of units sold Unit cost Date purchased 100 100 Jan. 5 Jan. 10 Jan. 15 Jan. 17 Jan. 24 Jan. 30 £1

All sales were made at £2 each.
Required
Calculate the profit for the month and the stock value held at the end of the month using:
(a) The FIFO approach
(b) The LIFO approach

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Financial and Management Accounting

ISBN: 978-1292086590

7th edition

Authors: Pauline Weetman

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Question Posted: Jan 25, 2018 01:29 AM

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During its first month of operations, a business made purchases and sales as shown in the table

Question:

Number of units Number of units sold Unit cost Date purchased 100 100 Jan. 5 Jan. 10 Jan. 15 Jan. 17 Jan. 24 Jan. 30 £1.00 50 £1.10 200 150 300 £1.15 200

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a FIFO Date Description No of units CostPrice Unit Total 5Jan Purchased 10000 100 10000 ...View the full answer

Financial and Management Accounting

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