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10 marksFinancial Statements and Users of Accounting Information

CAPE Management of Business Unit 1 · 2007 · Paper 2 · Question 6(a)

Kensington Creations markets a single product. Inventory details for January to June are given: Opening stock in January of 15 units @ 20; February purchase of 25 units @ 18; March sale of 18 units; April purchase of 10 units @ $22; June sale of 16 units.

Construct a table which shows the value of the closing stock at the end of EACH month using the 'Last In First Out' (LIFO) method of accounting for stock.

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Other parts of this question

  1. 6(b)Compute the Cost of Goods Sold EACH month, for the six-month period.[5 marks]
  2. 6(c)If the items are sold for $52 each, draw up a Trading Account for the six-month period ending June 30.[10 marks]

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