The following information related to china CDs China CDs used the periodinc inventory system to account for
Question:
The following information related to china CDs China CDs used the periodinc inventory system to account for it inventory. The following information related to the three month period ending 31st march 2020. All cost are net of GST. At January 1 2020 beginning inventory was 1000 CDs with an average cost of $4 each
Unit purchased | Total cost of purchase | Unit sold | Total sale | |
January sales purchase | 800 | 3600 | 800 | 8000 |
February sale purchase | 1200 | 6000 | ||
March sale purchase | 1100 | 11200 | ||
2000 unit | $9600 | 265 unit | 27700 |
A physical stock take contain 350 CDs on hand in 31 March 2020
a) calculate the cost of inventory of CDs on hand at 13 march 2020, under each of the following cost flow method
- The weighted average method (3mark)
- The first in first out(fifo) method (3mark)
b) assuming the value of closing stock is $4.50 per unit prepare a statement to show calculation of gross profit for three months ended in 31 march 2020 (3 mark)
Financial Reporting and Analysis
ISBN: 978-0078025679
6th edition
Authors: Flawrence Revsine, Daniel Collins, Bruce, Mittelstaedt, Leon