CHAPTER 9 – STRUCTURED QUESTIONS Frankie’s Auto Garage has the following purchases for December 20— DATE QUANTITY UNIT PRICE TOTAL Dec 1 40 $50 $2 000 Dec 5 60 70 4 200 Dec 18 20 40 800 Dec 29 50 30 1 500 Dec 30 15 60 900 $9 400 Frankie’s Auto Garage unit selling price for each product was $200. The sales for the month of December were as follows: DATE QUANTITY Dec 7 70 Dec 20 30 Dec 31 70 (1) Using the FIFO method, calculate the value of closing stock as at December 31 st .
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CHAPTER 9 – STRUCTURED QUESTIONS
Frankie’s Auto Garage has the following purchases for December 20—
DATE QUANTITY UNIT PRICE TOTAL
Dec 1 40 $50 $2 000
Dec 5 60 70 4 200
Dec 18 20 40 800
Dec 29 50 30 1 500
Dec 30 15 60 900
$9 400
Frankie’s Auto Garage unit selling price for each product was $200. The sales for the
month of December were as follows:
DATE QUANTITY
Dec 7 70
Dec 20 30
Dec 31 70
(1) Using the FIFO method, calculate the value of closing stock as at December 31st.
(2) Using the LIFO method, calculate the value of closing stock as at December 31st
(3) Using the AVCO method, calculate the value of closing stock as at December 31st
(4)Prepare an income statement (in columnar) for each of the stock valuation methods
showing the gross profit values
(3) Which of the three (3) stock valuation methods will give the highest gross profit