Question

Robinson Ltd. has the following inventory movements in the month of September: Units £ per unit Opening stock 10 20 1 Sep goods in 8 22 2 Sep sales (9) 3 Sep goods in 6 24 4 Sep sales (11) 5 Sep goods in 4 26. What is the closing stock at the end of September?

Answer 1

To calculate the closing stock for Robinson Ltd., the company's inventory movements throughout September are considered, including the opening stock.

Step-by-step explanation:

To calculate the closing stock at the end of September for Robinson Ltd., we need to account for all inventory movements during the month. The company begins with an opening stock of 10 units at £20 each. On 1 Sep, 8 units are purchased at £22 per unit, followed by a sale of 9 units on 2 Sep.

Then, on 3 Sep, they acquire an additional 6 units at £24 per unit, sell 11 units on 4 Sep, and purchase another 4 units at £26 on 5 Sep. The closing stock is determined by subtracting the number of units sold from the total units available at the end of the period, multiplied by the cost per unit of the remaining stock.