In: Accounting
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.