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For six months ended 31st October, 2013, Luanshya Limited (LL), an importer and distributor of one type of
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For six months ended 31st October, 2013, Luanshya Limited (LL), an importer and distributor of one type of printer's machine has the following transactions in his records. There was an opening balance of 100 units which had a value of K3,900. Date May June August Date Each K July Bought Quantity in Units 100 200 September October 400 The price of K51 875 each for the August receipt was K6.125 per unit less than the normal price because of the large quantity ordered. Cost per Unit K 350 41 50 51.875 Sold Quantity in Units 250 100 64 74 70 Price Required: (a) Prepare the stores ledger records using weighted average, FIFO and LIFO methods, showing clearly inventory balance. (9 marks) (b) Prepare the trading account for the period to show the gross using each of the three methods profit above. (9 marks) (c) Based on the calculations in (b) comment on the method which can be regarded as the best measure of profit. (2 marks) [Total: marks] 20

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a Stores Ledger Records Weighted Average Method Beginning Inventory May 100 units x K41 K4 100 June Purchase 200 units x K50 K10 000 August Purchase 4 View the full answer


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Related Book For  answer-question
Intermediate Accounting

Intermediate Accounting

ISBN: 9787300071374

3rd Edition Vol. 1

Authors: Kin Lo, George Fisher

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Question Details
Chapter # 9
Section: Mini Cases
Problem: 4
Posted Date: September 30, 2023 07:33:31
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