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IA – JULY 2020 – L1 – Q5 – Inventory Valuation
Compute closing stock using FIFO (periodic and perpetual), LIFO (perpetual), and moving average (perpetual) from January 2020 transactions.
Question
CORONAVIRUS LIMITED transactions for January, 2020 for stock purchases and sales were as follows:
| Date | Particulars | Units | Unit Cost (GHS) |
|---|---|---|---|
| January 1 | Stock-on-hand | 500 | 250 |
| January 1 | Sales | 100 | |
| January 2 | Purchases | 200 | 260 |
| January 8 | Sales | 200 | |
| January 10 | Purchases | 300 | 300 |
| January 17 | Sales | 300 | |
| January 23 | Purchases | 100 | 270 |
| January 25 | Sales | 200 |
You are required to compute the January 31, 2020 closing stock using:
- First-in, First-out (FIFO) based on a periodic inventory
- Last-in, First-out (LIFO) based on a perpetual inventory
- Moving Average based on perpetual inventory
Find Related Questions by Tags, levels, etc.
- Tags: Closing Stock, FIFO Periodic, FIFO Perpetual, LIFO Perpetual, Moving Average Perpetual
- Level: Level 1
- Topic: Stock Identification and Valuation (IAS 2)
- Series: JULY 2020
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