A question on Stock Cards:
Stock Gain - always follow Conservatism, that is, if there are two balances with differing cost prices, always add the quantity to the cheaper of the cost prices so as not to overstate assets and owner's equity.
Stock Loss - always use FIFO as per normal
Purchase Returns - the credit note must identify the cost price of the stock that is being returned (i.e. FIFO doesn't apply)
Here's where my question is....
Sales Returns - it says in the VCAA Study Design that FIFO is reversed (i.e. Last out, first in - regardless of whether the last stock out was a sale or not). The textbook also suggests this.
However, in one practice exam, and I think maybe another one or two, there have been instances whereby in additional information they will say that a trade debtor has returned "stock line" purchased on "specific date" (which is normally a few weeks prior to the last entry in the stock card). So, my question is, should it appear tomorrow, do we uphold the rule stated in the Study Design and the textbook, or do we specifically record, in the 'IN' column, the particular cost price that the trade debtor paid on the specified date (because more often that not, the cost prices will differ depending on what way you go about it)?
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