LTT Had Stock on Hand on the 1st January 2018 $\quad$

Essay

LTT had stock on hand on the 1st January 2018 of 100 heaters valued at $50 each.
The following transactions occurred during January:
Jan 7 $\quad$ bought 110 heaters at $\$ 52$ each
$\quad$ 15 $\quad$ sold 60 heaters at $\$ 80$ each (selling price
$\quad$ 30 $\quad$ sold 70 heaters at $\$ 80$ each (selling price) REQUIRED:
a)Calculate cost of sales and closing stock at the end of the month from the above information using:
i) $\quad$ the FIFO methed of valuation,
ii) $\quad$ the LIFO method of valuation, and
iii) $\quad$ the average cost method of valuation. b)Prepare a statement of comprehensive income for the month ended 31 January under each method assuming no stock loss (use a columnar approach).
c) 1) Which method produces the most favourable profit result for LTT?
ii) Comment on why the differences in profit have occurred under the 3 methods.