Question: On 1st January 2020, Mr. Mogotsi started a small business buying and selling special yellow maize.

During the next six months, the following transactions occurred.

Opening balance & Purchases Issues

January 01 200 units @ P36 /unit.

February 16   400 units @ P38 /unit.
March 22 700 units 
April 18 600 units @P40/unit
May 08  1,000 units @ P45/unit.
May 29 200 units @ 50/unit
June 15 1,200 units
The maize is stored in premises which Mr Kgosi has rented for P 9,000 per annum, and the closing stock was
counted on the 30th June 2019. Other expenses incurred and paid in cash in the six months period as follows:

Salaries P 4, 500
Maintenance charges P 6, 000
Transport charges P 7, 500
Other expenses P 5, 000
Required;(i) Compute the value of ending stock on June 30, as well as the value of issues for the months if the
First in, first out (FIFO) Last in, First out methods are used by the business.

(ii) If the sales price per unit is P 75, Calculate net profit by preparing an Income statement using the FIFO,
LIFO and Weighted Average methods.

Question: On 1st January 2020, Mr. Mogotsi started a small business buying and selling special yellow maize.
During the next six months, the following transactions occurred.

Opening balance & Purchases Issues

January 01 200 units @ P36 /unit.

February 16   400 units @ P38 /unit.
March 22 700 units 
April 18 600 units @P40/unit
May 08  1,000 units @ P45/unit.
May 29 200 units @ 50/unit
June 15 1,200 units
The maize is stored in premises which Mr Kgosi has rented for P 9,000 per annum, and the closing stock was
counted on the 30th June 2019. Other expenses incurred and paid in cash in the six months period as follows:

Salaries P 4, 500
Maintenance charges P 6, 000
Transport charges P 7, 500
Other expenses P 5, 000
Required; (i) Compute the value of ending stock on June 30, as well as the value of issues for the months if the
First in, first out (FIFO) and Last in, First out methods are used by the business.
(ii) If the sales price per unit is P 75, Calculate net profit by preparing an Income statement using the above
FIFO, LIFO and Weighted Average methods.