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Calculate the value of closing stock and gross profit

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Reference no: EM132506653

The following inventory data relates to the month of January of ABC co.

                        Units $/unit

Opening Inventory 500 5

1st Jan Purchased 200 5.5

5th Jan Purchased 150 5.75

8th Jan Issues/Sales 450 8

10th Jan Purchased 350 6

15th Jan Issues/Sales 350 8.25

Question 1: Calculate the value of closing stock and gross profit using:

a) FIFO stock valuation

b) AVCO periodic stock valuation

c) AVCO perpetual stock valuation

Question 2: Why do the different methods of stock valuation produce different results? Wouldn't that affect the final accounts?

Reference no: EM132506653

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