User Account

All Pages

Calculate the value of closing stock and gross profit

Assignment Help Financial Accounting
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

Questions Cloud

Prepare the entry for the security sale on january : Compute the unrealized gains or losses and prepare the adjusting entry for Parnevik on December 31, 2011. Prepare the entry for the security sale on January
Consumption function shifts upward : If consumption increases because the entire consumption function shifts upward, then the economy has experienced a change in MPC.
Concept of coordination failure : The new Keynesian model relies on the concept of coordination failure to explain why demand and supply shocks lead to undesirable output and employment fluctuat
How will the exchange rate : How will the exchange rate (strong currency) affect US economy in the future?
Calculate the value of closing stock and gross profit : Why do the different methods of stock valuation produce different results? Wouldn't that affect the final accounts? Calculate the value of closing stock
Project Topic - End hunger, achieve food security : Project Topic - End hunger, achieve food security and improved nutrition and promote sustainable agriculture & Food security
Events shifts the short-run aggregate supply curve : Explain whether each of the following events shifts the short-run aggregate supply curve, the long-run aggregate supply curve, or both.
New keynesian model and the new classical : What are the similarities and differences between the new Keynesian model and the new classical and real business cycle models?
What is difference between trade discount and cash discount : "Looking at the trial balance concerned that trade payables, which are bad news, and profit, which is good news, are both credit balances. How can this be so?"

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd