The Lestrade & Metropolitan Manufacturing company produce aluminium die

The Lestrade & Metropolitan Manufacturing company produce aluminium die
cast models of famous fictional characters. On the 1st of September they carried out
a stock check and found that they held in their company stores a quantity of 1,100
tonnes of aluminium alloy, which is valued at £5.10 per tonne (as shown in Table
Q3c). The goods received notes and materials requisitions (from production departments) show the following receipts and issues during the month as given in
Table Q3c:
Date
Receipts Issues
(Quantity – tonnes)
Quantity
(tonnes)
Price per tonne £
1 September 1,100 5.10
2 September 1,000 5.50
3 September 750
14 September 750
15 September 950 6.10
16 September 750
29 September 1,000 6.40
30 September 750
Table Q3c
i) – Construct and use a table with columns representing “dates, receipts, issues and
inventory balance” and use the FIFO (First In First Out) and the AVECO (Average
Cost) methods to determine the stock balance in terms of both quantity and value at
the end of the month.
ii) – Identify which of the two methods would give the higher profit for the month in
this particular case, giving your reasons. (Maximum 100 words).
(5 marks)
(Total 25 marks)