Surgical Gloves
You import and sell surgical gloves. Recently, prices have changed dramatically. Below is a record of purchases and sales of boxes of gloves for the most recent three months of this year.
| Date | Purchase/sale price per box (£) | ||
| 4 February | Received | 15,000 boxes | £8 |
| 15 February | Sold | 17,000 boxes | £10 |
| 3 March | Received | 30,000 boxes | £11 |
| 7 March | Sold | 35,000 boxes | £13 |
| 24 March | Sold | 6,000 boxes | £15 |
| 3 April | Received | 30,000 boxes | £13 |
| 10 April | Sold | 35,000 boxes | £17 |
You had 20,000 boxes of gloves in stock at the beginning of February, which are valued at £7.50 per box. Other business expenses amount to £7,800 per calendar month, which you pay as they arise.
Required:
- Calculate both the cost of sales and the closing inventory for the last three months using (i) FIFO; (ii) LIFO; and (iii) AVCO stock flow assumptions.
- Calculate your profit for this period using each of the three stock flow
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