FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:FIFO METHOD
On 1 August L&T Co. had a balance in inventory of 120 units at AED14.25 per unit. The following transactions occurred during the month.
Augs 4
Purchased 155 units at AED15 per unit
Augs 5
Retumed 10 units from August 4 purchases
Augs 6
Sold 175 units
Augs8
40 of the units sold on Augs 6 were returned
Augs10
Purchased 135 units al AED 17 per unit
Augs 12
Returned 25 of the units that was purchased on Augs 10
a, Prepare the inventory valuation report using FIFO (First In-First Out)
b. Compute the total cost of goods sold and ending inventory on Augs. 31.
Description
Cost of goods purchased
Units
Cost of goods sold
Price
Ending Invento
Units
Date
Price
Total Cost
Units
Total Cost
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