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1 markInventory Valuation Methods

CSEC Principles of Accounts · January 2017 · Paper 2 · Question 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.

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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(b)Complete the inventory valuation form using the FIFO method, and state the value of inventory as at 31 March 2016.[11 marks]
  3. 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]

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