QUESTION - During December 2016 Qosqo Ltd sold 1 300 units of its product for $5 525. A periodic inventory system issued for valuing inventories, and the physical physical count on 31 December verified that 700 unit's were on hand. The following information relates to the inventory of Qosqo Ltd during December.
Quantity Unit cost Total costs
01/12 Beginning inventory 700 $3.00 $2100
10/12 Purchase 500 $3.15 $1575
15/12 Purchase 300 $3.30 $990
23/12 Purchase 500 $3.50 $1750
2000 $3.00 $6415
Required (show all workings): Determine the cost of sales and cost inventory at 31 December using the following inventory methods (show all workings):
1. Specific identification, assuming that 400 units were sold from the beginning inventory, 400 units were sold from the first purchase, 200 units were sold from the 15 December purchase, and the remainder from the 23 December purchase.
2. FIFO
3. LIFO
4. Weighted Average