Royal Ventures transacted the following business in the month of December as follows: Date Quantities Unit Price
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Question:
Royal Ventures transacted the following business in the month of December as follows:
Date | Quantities | Unit Price ($) | Total ($) | |
December 1 | Opening stock | 20 | 50 | 1000 |
December 2 | Purchase | 70 | 60 | 4200 |
December 15 | Purchase | 40 | 65 | 2600 |
December 24 | Purchase | 100 | 78 | 7800 |
December 3 | Sales | 50 | 70 | 3500 |
December 8 | Sales | 30 | 70 | 2100 |
December 18 | sales | 45 | 85 | 3825 |
December 27 | sales | 85 | 100 | 8500 |
Required: Compute the values of the following using the First In First Out method of valuation: (a) the closing inventory; (b) the cost of sales; (c) the sales; (d) cost of goods available; and (e) the gross profit
Please show all workings (or computations).
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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