Page 57 - Accountancy_F5

Required:
(a) For the year 2023, calculate the cost of the closing inventory and the cost of
sales using both the FIFO and LIFO methods under two inventory systems:
the periodic system and the perpetual system.

(b) Based on the results obtained under (a) above, provide a detailed analysis on
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the observed differences between the FIFO and LIFO methods under both
inventory systems. Additionally, explain the potential reasons behind these
differences.
2. Inventory data for items inventories by Janja Electronics, for the month of June,
2024 are as follows:

Date Unit cost Total cost
June, 2024 Details Units TZS TZS
01 st Opening 3,000 3,000 9,000,000
inventory
03 rd Purchases 1,500 3,300 4,950,000

18 th Sales 2,000 - -
27 th Purchases 3,500 3,200 11,200,000

31 st Sales 4,000 - -
Sales
3,500
30 th LANGUAGE EDITING -
-
Required: Compute the cost of sales during June and the closing inventory at 30 June,
th
2024 using FIFO, LIFO, and WAM under the perpetual and periodical
inventory management systems.

3. The following records pertain to the inventory of Mjimkongwe Stores for the month
of September 2023, maintained using the perpetual inventory-taking system.
Date Unit cost Total cost
September, 2023 Details Units TZS TZS

01 st Opening inventory 2,000 700 1,400,000
08 th Purchases 1,250 735 918,750

13 th Sales 1,000 - -
21 st Sales 1,250 840 1,050,000
22 nd Purchases 1,500 - -

30 th Sales 1,750 - -

Student’s Book Form Five
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