The table below summarises inventory transactions for Staples Ltd for the month of March 2024:

Required

(a) Staples Ltd has adopted a periodic inventory system using the FIFO method of cost allocation. Assuming there are no stock losses of inventory, calculate the cost of sales for the month of March 2024.

(b) Assuming instead Staples Ltd used perpetual inventory and the moving average method of inventory costing, determine the unit cost to be allocated to the sale on 26 March.

Transcribed Image Text:

Date Transaction Units Unit Cost Total Cost March 1 Beginning Inventory 45 $ 8.00 $ 360.00 7 Purchase 100 9.00 900.00 11 Sale 90 17 Sales Return 5 24 Purchase 130 10.00 1 300.00 26 Sale 125 29 Purchase Return 6 10.00 60.00