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Exercise 1) Evaluation of Inventory:A company has collected the following data from the purchase and use of heating fuel from its Business Statistics department for inventory management of the previous year:Purchase Price (EUR/liter)0,800,750,810,900,76Amount used/consumed (liters)700023000900011000a) Calculate the cost/use of material sold for the material(energy):Based on the following evaluation methods:- FIFO- HIFO- LIFO- average priceb) Book the transaction for the consumption of the fuel at the 31.12.2006 (1.1.-31.12.2006) correctly by using the FIFO-method and indicate the effect on the profit! (All the purchases of the fuel have been recorded yet!)
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