On 1 January, a company had an opening inventory of 100 units which cost at Rs.50 each. During the year, it made following purchases and sales.
Purchases:
5th April- 300 units at Rs.60 each, 14th July-500 units at Rs.70 each, 22nd Oct-200 units at Rs.80 each.
Sales:
9th May 200 units, 25th July 200 units, 23rd November 200 units, 12th December 200 units.
Required:
Problem 1: Based on perpetual inventory system, calculate the following.
- In FIFO method, determine cost of goods sold and value of closing stock.
- In Weighted average method, determine cost of goods sold and value of closing stock.