(FIFO) Stock Valuation Method Assignment
On 1 Could 2018, a flash flood destroyed a number of the cotton housed at Mr. Fleet's warehouse. He's uncertain of the quantity of cotton that was destroyed and desires to supply detailed calculations to his insurance coverage firm. Mr. Fleet has requested you, his niece, learning in the direction of your B.Com diploma to help on this regard as a result of you have got discovered in regards to the inventory valuation strategies. The next info, as set out under has been offered to you: . The monetary year-end of the corporate is 31 October every year. The inventory saved from flooding amounted to N$2880. There was no opening stability of cotton as of 31 October 2018. The primary in, first-out (FIFO) inventory valuation technique is utilized by Mr. Fleet. The next transactions, detailed under, appeared within the books for the interval 1 November 2017 to 1 Could 2018: Date of receipt Date of dispatch Cotton Bought (field) Promoting value Cotton Value per field purchases after alternate (field) price conversion NS 40 180 190 200 NS 250 100 01/11/2017 08/02/2018 11/03/2018 80 10/02/2018 15/03/2018 25/03/2018 30/04/2018 101 400 REQUIRED: a) Assume there was no flood, calculate the worth of stock available on 30 April 2018 utilizing the FIFO inventory valuation. b) Based mostly on unique info, advise Mr. Fleet on the worth of inventory misplaced within the flood that ought to be offered to the insurance coverage firm. .