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Question

1.                 The following information about Q, a stock item sold by Patel has been

presented to you.

October 1

b/d

100 units @ sh. 20

October 5

Sale

80 units @ sh. 25

October 7

Purchase

200 units @ sh. 22

October 13

Sale

60 units @ sh. 27

October 17

Purchase

300 units @ sh. 23

October 24

Sale

320 units at sh. 28

October 29

Purchase

150 units @ sh. 24

October 31

Sale

200 units @ sh. 29

 

           Required:

           Compute the cost of closing stock and the gross profit under each of the following cost flow assumptions.

a)     LIFO periodic

b)     LIFO perpetual

c) Weighted average perpetual.

Top Answer

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LIFO perpetual.xlsx

LIFO perpetual Oct-01
Oct-05
Oct-07 purchases
100
200 sales
20 300 150 1600 60 22 1320 300
20 23
22 6900
440 150
50 24
22 3600
1100 23 Oct-24
Oct-29 20 22 Oct-13
Oct-17 80 24 Oct-31 Total sales...

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Other Answers

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LIFO.docx

Purchases
1-Oct 100 Units @ sh.20
5-Oct
7-Oct 200 units @sh22
13-Oct
17-Oct 300units @ sh23
24-Oct
29-Oct 150 units @ sh24
31-Oct
Periodic LIFO
Cost of Closing Stock Sales
80 units @sh.25
60 [email protected]

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