COST OF SALE Calculation Help

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hi there,

Just a quick one for exam paper

I need to Calculate the following:

Gross profit
Closing stock

Units Price per unit
Opening stock 200 R100
Purchases 100 R50
Sale 250 R 500
Purchases 150 R150
Sale 50 R 300

This is all info given. The sale price is too high to calculate cost of sale? Please help, I’m confused here
 
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its 200units @ R100
100units @ R50
250 units @ R500
150 units @ R150
50 units @ RR300
 
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Using FIFO, the value of the closing stock is as follows:
openning stock 200 units @ R100 = R20,000
Purchases 100 units @ R50 = R 5,000
Total (300 units)
Initial sales 250 units @ R500 =R125,000
Units left, 50 units @ R50= R2,500
additional purchases 150 units @ R150= R22,500
additional sales 50 units @ R300 = R15,000
****Closing stock 150 units at R150 =R22,500
****Gross profit R140,000 (R125,000 + R15,000) - R27,500 (R20,000 + R5,000 + R2,500) = R112,500.

Summary:
Sales Revenue R140,000
Cost of sales R 27, 500
Gross profit R112,500

Closing stock 150 units @ R22,500

I hope this answers your question. There are other methods of valuing stocks that you can use, namely, LIFO and Weighted Average method. Accounting standards in most countries prohibits the use of LIFO.
 

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