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Question - On 1 November 2019, JS Company held 300 units of finished goods in inventory. The company use perpetual inventory system. These were valued at RM12 each. During November 2019 three batches of finished goods were received into store from the production department, as follows:
Date
Units received
Production cost per unit
10 November
400
RM12.50
20 November
RM14
25 November
RM15
Goods sold out of inventory during November were as follows:
Units sold
Sale price per unit
14 November
500
RM20
21 November
28 November
100
Required - Determine the gross profit from selling inventory in November 2019, applying the following principles of inventory valuation:
(a) FIFO
(b) Average cost.
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