Pod Fashion Buys and Sells Shoes

Essay

Pod Fashion buys and sells shoes. At 1 January the business held 500 pairs of shoes, valued at $10 a pair.
During January the business sold 410 pairs of the shoes at $40 cash per pair. The average cost of selling the shoes was $10 cash per pair. The replacement cost of the shoes at 31 January was $12 a pair. Further, due to market competition, the expected selling price of the shoes in the foreseeable future will be $38 a pair at an average selling cost of $10 per pair.