Question
Marathon Goods Ltd is a wholesale distribution firm.
The following information relates to the movement in stores of its key productXK
Sales of units @ per item are recorded for the month.
There is an opening stock of units, valued at at March
Required:
a Calculate the gross profit for the month of March using each of the following
methods of inventory valuation:
I. FIFO
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II LIFO
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III. Weighted Average
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b Which inventory stock valuation is most relevant for decision making purposes?
Explain your answer.
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c XYZ Ltd a pen manufacturer, assembles monthly data for the first eight months of
production of its new deluxe pen.
The lowest production occurred in February: pens for a total cost of
August saw the highest production: pens costing
Required:
Use this information to predict the costs for December's production quota of
pens.
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Total marks
