Compute the cost of sales and closing inventory for Ganada Coose ltd using the below information: Opening stock with Cost at €10,500 (220 units) and NRV of €11750 Jan purchases 1000 units at €45 per unit March purchases 950 units totalling €41,250 May sales €930 August purchase 400 units at €41 per unit November sales 1470 units Questions: 1. What was the Cost of Sales for the FIFO method? 2. What was the closing inventory for the FIFO method? 3. What was the cost of sales for the AVCO? 4. What was the closing inventory for the AVCO method?

1. The cost of sales for the FIFO method would be €10,500 + €45,000 + €41,250 = €96,750. 2. The closing inventory for the FIFO method would be €41,000 - €930 - €14,700 = €25,370. 3. The cost of sales for the AVCO method would be €10,500 + (950 * €41) + (400 * €41) = €48,350. 4. The closing inventory for the AVCO method would be €48,350 - €930 - €14,700 = €32,720.

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In: Accounting

Compute the cost of sales and closing inventory for Ganada Coose ltd using the below information

Compute the cost of sales and closing inventory for Ganada Coose ltd using the below information:

Opening stock with Cost at €10,500 (220 units) and NRV of €11750

Jan purchases 1000 units at €45 per unit

March purchases 950 units totalling €41,250

May sales €930

August purchase 400 units at €41 per unit

November sales 1470 units

Questions:

1. What was the Cost of Sales for the FIFO method?

2. What was the closing inventory for the FIFO method?

3. What was the cost of sales for the AVCO?

4. What was the closing inventory for the AVCO method?

Expert Solution

1. The cost of sales for the FIFO method would be €10,500 + €45,000 + €41,250 = €96,750.
2. The closing inventory for the FIFO method would be €41,000 - €930 - €14,700 = €25,370.
3. The cost of sales for the AVCO method would be €10,500 + (950 * €41) + (400 * €41) = €48,350.
4. The closing inventory for the AVCO method would be €48,350 - €930 - €14,700 = €32,720.

Nabeel answered 2 years ago

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