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Question - Wigan plc had 400 calculators in inventory at 1 January 2017 that had cost £36 each. Purchases and sales of calculators during the year to 31 December 2017 were as follows:
Date Purchases Sales
31 January 300 @ £56
1 April 200 @ £40
10 June 200 @ £44
14 October 200 @ £64
According to a physical count, 300 calculators were on hand at 31 December 2017 (Wigan plc does not use perpetual inventory records).
What is the cost of goods sold and gross profit for the year ending at 31 December 2017 under the FIFO method?
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