Quelpr
11 marksInventory Valuation Methods

CSEC Principles of Accounts · January 2017 · Paper 2 · Question 2(b)

Transaction records for tyre purchases and sales for the three months ended 31 March 2016 are provided.

Complete the inventory valuation form using the FIFO method, and state the value of inventory as at 31 March 2016.

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Other parts of this question

  1. 2(a)Explain in ONE sentence how LIFO differs from the FIFO method of inventory valuation.[1 mark]
  2. 2(c)Using the information from the inventory form, prepare the Trading Account for Mhalal and Jack for the three months ended 31 March 2016.[7 marks]
  3. 2(d)Describe in ONE sentence the effect on cost of goods sold and gross profit if the LIFO method had been used which yields a lower closing inventory valuation.[1 mark]

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