Question

192 65 units 15 Purchase 2 units 29 6100 The business maintain a pr i vestory vm. costing by the first out to FF, we were the with the w o and in the investory Unit Cost column rst is the Merchandisent Cost c Cost of the Merchandise So schedule First touch ory Oy 0 0 Il blon III III0 DIII 00000 0

Answer 1

SOLUTION : 1(A)
FIFO METHDO
		COST OF GOODS AVAILABLE FOR SALE			COST OF GOODS SOLD			ENDING INVENTORY
Date	Particulars	No. of Units	Cost Per unit	Total	No. of Units	Cost Per unit	Cost of Goods Sold	No. of Units	Cost Per unit	Ending invetory
Apr, 01	Beginning inventory							80	$         92.00	$7,360
Apr, 10	Sales				65	$         92.00	$5,980	15	$         92.00	$1,380
Apr, 15	Purchases	42	$             96.00	$4,032				15	$         92.00	$1,380
								42	$         96.00	$4,032
Apr, 20	Sales				15	$         92.00	$1,380
					4	$         96.00	$384	38	$         96.00	$3,648
Apr, 24	Sales				19	$         96.00	$1,824	19	$         96.00	$1,824
Apr, 30	Purchases	29	$           100.00	$2,900				19	$         96.00	$1,824
								29	$      100.00	$2,900
	Total	71		$6,932	103		$9,568	48		$4,724
SOLUTION : 1(B)
	When Purchase price of material is increasing than it means cost of Goods sold is higher at site and inventory at lower site.
	It means in given situation if LIFO method is used than inventory will be at lower site (Pending for issue purchase in innitial)
	Answer = Lower