ASSIGNMENT

1. A company’s inventory records show the following movements in inventory during

March 2021:

Date Details Kg Cost ($/Kg)

March -1 Opening Balance 300 1
March -1 Issued 200 -
March -5 Purchased 800 2
March -8 Issued 400 -
March -12 Purchased 500 4
March -15 Issued 300 -
March -19 Purchased 800 3
March -22 Issued 600 -

Calculate:
A. FIFO
B. AVCO (AVERAGE COST)

2. What is the final inventory value in these information below?

Food Cost ($) Net Realizable Value ($)

Spinach 80,000 120,000
Carrots 100,00 100,000
Cut beans 50,000 40,000
Peas 90,000 72,000
Mixed vegetables 95,000 92,000

3. What is the ending inventory using the retail inventory method?

Cost ($) Retail ($)

Beginning Inventory 30,000 35,000
Purchases 80,000 110,000
Sales Revenue 100,000
Ending inventory at retail
4. Assume that Habib Company has a beginning inventory of $70,000 and purchases of
$200,000, both at cost. Sales at selling price amount to $310,000. The gross profit on
selling price is 40 percent.

What is approximate inventory cost?

5. Explain the concepts of capital and revenue expenditure and give example each one
6. Discuss accounting for partnerships