A business commenced on 1st January and purchases are made as follows: Month No. of...

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Accounting

A business commenced on 1st January and purchases are made as follows:

Month No. of Units Unit Price Value

1st Jan 380 2.00 760

1st Feb 400 2.50 1000

2nd Feb 200 700

1st Mar 350 2.50 875

27th Mar 300 1000

1st April 420 2.75 1155

1st May 430 3.00 1290

4th May 300 1200

1st June 440 3.25 1430

30th June 400 1500

Calculate the closing inventory using both fifo and avco and prepare the income statement and balance sheet under fifo and avco method

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