During its first month of operations, a business made purchases and sales as shown in the table below:

Date

Number of nits purchased

Unit cost

Number of units sold

Jan. 5

100

$1.00

Jan. 10

50

Jan. 15

200

$1.10

Jan. 17

150

Jan. 24

300

$1.15

Jan. 30

200

All sales were made at £2 each.

Required Calculate the profit for the month and the stock value held at the end of the month using:

(a) The FIFO approach to the issue of units for sale, where:

(i) The calculation is carried out at the date of sale; and

(ii) The calculation is carried out at the end of the month without regard for the date of sale; and

(b) the LIFO approach to the issue of units for sale, where:

(i) The calculation is carried out at the date of sale; and

(ii) The calculation is carried out at the end of the month without regard for the date of sale; and

(c) The average-cost approach to the issue of units for sale, making the calculation at the end of the month without regard for the date of sale.

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