Spratley Ltd is a builders’ merchant. On 1 September the business had, as part of its inventories, 20 tonnes of sand at a cost of £18 per tonne and at a total cost of £360. During the first week in September, the business bought the following amounts of sand:

On 7 September the business sold 60 tonnes of sand to a local builder.
Required:
Calculate the cost of goods sold and the closing inventories from the above information using the following costing methods:

(a) first in, first out

(b) last in, first out

(c) weighted average cost.

Transcribed Image Text:

20 24 25 222 September Tonnes Cost per tonne 246 48 15 10