Details for receipt and issues of Gabriel Ltd for the year 2014 : Receipts Issues 270 145 kgs @ $17 kgs @ s 18 177 kgs @ $25 January February March April June August November De ember 232kgs @ $19 134 kgs @ $25 246 tgs@ $ 20 212 kgs @ $29 169 kgs @ $30 | 148 kgs (6 821 when @ @ you are required to prepare profits for the year ending 31 December 2019 stock is based (i) FIFO method Auco method Discuss how Pruentong is valued according bo 'As 2 OO HUAWET P30 Pro LEICA QUAD CAMERA

SOLUTION

A) PROFIT UNDER FIFO AND AVCO METHOD

i)FIFO METHOD

GABRIEL LTD.

INVENTORY CARD AS ON 2019(FIFO METHOD)

CLOSING STOCK AS ON DECEMBER =211 UNITS @ $ 20= $ 4220

148 UNITS @ $ 21= $ 3108

TOTAL PURCHASES

JANUARY :145 UNITS @ $ 17= $ 2465

FEBRUARY :270 UNITS @ $ 18 = $4860

APRIL :232 UNITS @ $ 19 = $ 4408

AUGUST :246 UNITS @ $ 20 = $ 4920

DECEMBER :148 UNITS @ $ 21 = $ 3108

TOTAL,1041 UNITS = 19761

COST OF ENDING INVENTORY=BEGINING INVENTORY+PURCHASES-COST OF GOODS SOLD

=0+19761-12433

= $ 7328   

COST OF GOODS SOLD =BEGINING INVENTORY+PURCHASES-ENDING INVENTORY

=0+19761-7328

=12433

PROFIT CALCULATION:

ON MARCH 2019

ISSUED :145 UNITS @ $ 17= $ 2465 AND 32 UNITS @ $ 18= $ 576

: ie, = $ 2465+$ 576=$ 3041

SALES PRICE=177 UNITS @ $ 25= $ 4425

THEREFORE PROFIT FOR MONTH MARCH =$ 4425-$ 3041

=$ 1384

ON JUNE 2019

ISSUED:124 UNITS @ $ 18 = $ 2232

SALES PRICE =124 UNITS @ $ 25 = $ 3100

THEREFORE PROFIT FOR MONTH JUNE = $ 3100 - $ 2232

= $ 868

ON NOVEMBER 2019

ISSUED:114 UNITS @ $ 18= $ 2052 AND 98 UNITS @ $ 19= $ 1862

   : ie,  = $ 2052+ $ 1862= $ 3914

SALES PRICE =212 UNITS @ $ 27= $ 5724

THEREFORE PROFIT FOR MONTH NOVEMBER= $ 5724- $ 3914

= $ 1810

ON DECEMBER 2019

ISSUED 134 UNITS @ $ 19= $ 2546 AND 35 UNITS @ $ 20= $ 700

SALES PRICE =169 UNITS @ $ 30= $ 5070

THEREFORE PROFIT FOR MONTH DECEMBER= $ 5076 - $ 3246

= $ 1824

TOTAL PROFIT FOR THE YEAR 2019 UNDER FIFO METHOD= $ 1384+ $ 868+ $ 1810+ $ 1824

= $ 5886

ii) AVCO METHOD

GABRIEL LTD.

INVENTORY CARD AS ON 2019(AVCO METHOD)

DATE	PARTICULARS	RECEIPTS	ISSUES	TOTAL BALANCE
UNIT	COST	AMOUNT	UNIT	COST	AMOUNT	UNIT	COST	AMOUNT
JANUARY	PURCHASED	145	17	2465				145	17	2465
FEBRUARY	PURCHASED	270	18	4860				145 270	17 18	2465 4860
	AVERAGE COST OF INVENTORY	415	17.65	7325
MARCH	SALES				177	17.65	3124.05	238	17.65	4200.7
APRIL	PURCHASED	232	19	4408				238 232	17.65 19	4200.7 4408
	AVERAGE COST OF INVENTORY	470	18.32	8608.7
JUNE	SALES				124	18.32	2271.68	346	18.32	6338.72
AUGUST	PURCHASED	246	20	4920				346 246	18.32 20	6338.72 4920
	AVERAGE COST OF INVENTORY	592	19.02	11258.72
NOVEMBER	SALES				212	19.02	4032.24	380	19.02	7227.6
DECEMBER	PURCHASED	148	21	3108				380 148	19.02 21	7227.6 3108
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