Question 1 (25 marks)
Read the following questions and answer questions that follow.
Consider the following information. The following receipts and issues were recorded.
Date
2 April= Purchased 100 units at P55 each
6 April = Issued 400 units
10 April = Purchased 600 units at P60 each.
13 April = Issued 500 units
20 April = Purchased 500 units at P65 each.
25 April = Issued 600 units.
10 May = Purchased 800 units at P70 each.
12 May = Issued 500 units.
13 May = Issued 200 units.
15 May = Purchased 500 units at P75.
12 June = Issued 400 units.
15 June = Purchased 300 units at P80 each.
Additional information:
The stock of material on hand on 1 April 2020 was 400 units at P50 per unit.
Required:
Determine the value of closing inventories at 15 June 2020 using:
a) The FIFO method.
b) The LIFO method