80.2K
Verified Solution
Link Copied!
Question 14
Part -A
Wahda Co. incurred the following transactions during the month of January 2019.
January 1: Beginning Inventory (50 units @ 10 per unit).
January 10: Purchased 40 units @ 11 per unit.
January 15: Sold 60 units @ 15 per unit.
January 22: Purchase 60 units @ 12 per unit.
January 31: Sold 70 units @ 16 per unit.
Required: Use FIFO methods and calculate the following: (5 marks)
- Calculate cost of ending inventory on January 31st, 2019
- Calculate cost of goods sold for the period ending on January 31st, 2019
Note:
You need to make a table showing the following columns to show your working:
| Date | Purchases | Cost of goods sold | Inventory Balance |
Part -B
What is the consistency principle as per financial reporting standards and why a company should follow this principle? (1 mark)
Answer & Explanation
Solved by verified expert
