Answer to Question #86229 in Other for mahnoor

Question

⦁ An organisation’s stock records show the following transactions for a specific item during last month:
Date Receipts Issues
units units
4th 50
13th 200
20th 50
27th 50

The stock at the beginning of last month consisted of 100 units valued at £6,700.
The receipts last month cost £62 per unit.
The value of the closing stock for last month has been calculated twice – once using a FIFO valuation and once using a LIFO valuation.
Which of the following statements about the valuation of closing stock for last month is correct?
A The FIFO valuation is higher than the LIFO valuation by £250.
B The LIFO valuation is higher than the FIFO valuation by £250.
C The FIFO valuation is higher than the LIFO valuation by £500.
D The LIFO valuation is higher than the FIFO valuation by £500.

Answer 1

Dear mahnoor, your question requires a lot of work, which neither of our experts is ready to perform for free. We advise you to convert it to a fully qualified order and we will try to help you. Please click the link below to proceed: Submit order