Question

ZYX Pte Ltd had a beginning inventory of 600 units (unit cost $24) for a product for the month of May. Information relating to the purchases and sales for the month were as follows:

Purchases
	Units	Cost ($)
May 3	400	30
May 10	200	34
May 19	600	40
Sales
	Units	Sales Price ($)
May 8	600	60
May 13	500	80

Required: **ONLY NEED TO ANSWER PART B

Determine the cost of goods sold and cost of ending inventory for the month of May (where applicable, please round your answers to two decimal places) using the following inventory costing methods under the periodic system:

1. 1. First-in, first out (FIFO) method.
2. 2. Last-in, first out (LIFO) method.
3. 3. Weighted Average cost method. (12 marks)

(b) Identify and compare the effects on net profit and total assets across the three costing methods, holding all other conditions constant. (8marks)

Answer 1

PAGE NO DATE Salutien o fart (b euly नीम Sales Reere undar metnod 76,000 [(600 x60)+s00x8) Pur chases Len' L(400 132)+(20x3 4)+ (oox40)4800) ivteutosy im hange Addl stock) 13000 ब loty shuk- (27400 14400) 46200 Net गोक्ये As sets reut nseets Enventordes d27,400

(b undar Lo metha d $ Cales Reveure in Pifo) Clame 76000 Purhass Len' (42800) as in ito) Csame in inventory Add: Chamys 3000 1,400-14,400) $36,200 Net inuome Asset Current Asets Tuventores ¢17, 400 ndir wegued A-uraye Lo metthod 4 Rewrnue 76,000 Sales (42,800) Pinr chases Len chenge in inveutory (26,893- 14400) 12, 493 Ada 4 45,693 Net ineo me L set aurreut MS ets ¢26,413 Puventoydes

ТЕ PAGE NO. Conlluren mdor weluted LI Po C A cac 4'5,613 mder under Net iniome 46,200 36,200 Yaluo a sset 2,400 1400 26,493 the mot amuauut as tah bath Vouluu a ASeet Tue filo method (uowed Lenetit Mome the as well Net andl Least faveurable Lito metnod wheneas