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Answers

Exxampple 2

Calculation off the cost oof inventoryy using FIFFO and aveerage costt

Thee following purchasess and saless took placce in Tyronne during thhe first four
dayys of June:

Dayy 1 Openinng inventorry nil
Dayy 1 Purchaase 200 units at $15 pper unit

Dayy 2 Purchaase 100 units at $18 pper unit
Dayy 3 Sales oof 250 unitss at $30 peer unit

Dayy 4 Purchaase 150 units at $20 pper unit
Reqquired:

Calculate thee cost of innventory aat the endd of day 4 for Tyronee using:
(a) the FIFOO method;;

(b) the averrage cost method.

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