Question

03) INVENTORY VALUATION: 9 marks On January 1 Real Juice Co. had a balance in inventory of 125 juice bottles at AED14 per unit. The following transactions occurred during the month. Jan 4 Purchased 165 juice bottles at AED18 per bottle Jan 6 Sold 155 juice bottles at AED 20 Jan 10 19 of the juice bottles sold on Jan 6 were returned Jan 15 Purchased 88 juice bottles at AED 16.5 per bottle Jan 18 Returned 12 of the juice bottles that was purchased on Jan 15 Required: a) Prepare the inventory valuation report using FIFO method. (First In-First Out)

Answer 1

Please note that we don't take sale price at the time of sales in stock record. That is why I have take purchase of 14 and 18 to record sales.

Protect and Share Workbook Show/Hide Comment Allow Users to Edit Ranges Show All Comments Protect Protect Share Delete Previous Next Shew ink Sheet Workbook Workbook Track Changes Changes Comments R P N M K H. G Balance Kecelved Total Issued Particulars Date Unit Total Price Total Unit Price Unit Price 1750 125 14 1-Jan Opening balance 1750 14 18 125 4-Jan purchase 2970 165 2970 165 18 2430 135 18 1750 125 14 6-Jan sales Here we use reverse 540 30 18 FIFO. 2772 18 154 342 18 10-Jan sales return 19 2772 154 18 15-Jan puchase 88 16.5 1452 16.5 1452 88 18-Jan purchase return 198 154 18 2772 12 16.5 1254 76 16.5 reversal of purchase made on 15 jan 4026 230 12 A 11