Financial statement Pratice paper 4 FIFO IAS 2

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salih
salih Registered Posts: 81 Epic contributor 🐘
in General discussion
Can someone help this is urgent please. a company made a following purchase and sales of a product during the year to 31 December 20X0.

Date No of units. Cost per unit £
1 Jan Opening Inventory 500 2.80
8 May Purchased 1,000 3.00
11 Aug Purchased 600 3.60
29 Nov Purchased 1,900 4.20

The company sold 3,000 units during the year @ £6.00 per unit
The cost of inventories is calculated using the FIFO method

The company gross profitarrow-10x10.png for the year ended 31 December 20X0 will be?

If someone can help with this questionarrow-10x10.png this would mean alot, Thank you

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  • villapb
    villapb Registered Posts: 357
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    Opening stock will be 500 @ 2.80 =1,400 ................purchases 3,000+2,160+7,980=13,140.................Closing stock will be1000 @ 4.20 =4,200, as 1000 items left after 3000 sold.

    Sales 3000 @ 6 18,000

    Cost of sales..
    Opening stock 1,400
    Purchases 13,140
    14,540
    Less Closing stock (4,200)
    (10,340)
    Gross Profit 7,660

    That's how id do it..............
  • villapb
    villapb Registered Posts: 357
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    Format got changed

    Sales
    Minus
    Cost of sales:- opening stock plus purchases less closing stock
    Gross Profit
  • villapb
    villapb Registered Posts: 357
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    Salih the oldest stock form part of the sale order 500,1000,600,900 leaving 1000 items in the stock room at 4.20 each (closing stock), they where the last in, if it was lifo it would be the other way around leaving the oldest stock in the room.........
  • villapb
    villapb Registered Posts: 357
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    When I do fifo and lifo I always picture my self in a stock room actually picking the stock for the sales order, so I know if im picking the oldest stock or the newest stock and what im left with makes,,, its easy then
  • villapb
    villapb Registered Posts: 357
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    salih it was drummed into me..............sales less cost of sales =gross profit...............cos:-opening stock+purchases-closing stock.............
  • salih
    salih Registered Posts: 81 Epic contributor 🐘
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    i feel sick just done my exam today and for some reason one of the question was ias10 and i clicked the right answer but for some reason i clicked the one above after dont know why pushed finished, came home check the book and got pissed off. I'm happy with section 2 and section 1.5 rest im not too sure about would it be a pass or not? also whats the difference between 2010 module and the 2013 so i can prepare myself when i fail.

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