The first tutorial assessment task that needs to be completed for this semester and
uploaded to the assignment link on the LMS is provided below. While you should use
EXCEL to do your workings/calculations you will need to submit a single PDF file to
ensure appropriate printing and presentation.
This tutorial assignment task is worth 3% of your final assessment.
Watson Pty Ltd began operations on 1 July. It uses a perpetual inventory system. During July
the business had the following purchases and sales:
Purchases
Date
Units
Unit cost
Sales units
July 1
5
$?90
6
3
11
4
$?99
14
3
21
3
$106
27
4
Required:
(a) Use an EXCEL spreadsheet to reproduce the above table and determine the ending
inventory under a perpetual inventory system using (1) FIFO and (2) average cost. (It is
advisable to prepare a separate table for each method.)
(b) Explain which costing method produces the highest cost allocation to ending inventory and
what difference each method would make to the profit reported by Watson Pty. Ltd.?
Commentary should be brief (approx 75-100 words).
NOTE: There will be no specific instruction provided in class but students are referred to the
following website for guidance in developing their knowledge and skills in EXCEL. A
number of software modules have been developed by the University of Melbourne to assist
students to enhance their software skills. Refer to the Excel module for these exercises.
http://pickitup.unimelb.edu.au/
Students may also find resources such as the “ExcelIsFun” Youtube channel (2500+ videos)
to be helpful if you do not have any basic excel skills. Basic formatting of font sizes &
borders, printing to pdf and appropriate formatting and presentation of data is expected not
only for the assignment, but also by employers.
There is no requirement to follow a specific format in presenting the spread-sheet
(worksheet).