Osama Traders uses the Perpetual Inventory System. Following are the concerning purchases and sales of merchandise (including opening balance) during the month of October, 2014. Date Description Quantity Rate per unit January 01 Opening balance 6,000 Rs.12.00 January 03 Purchases 4,500 Rs.13.00 January 04 Sales 2,500 Rs.15.00 January 05 Purchases 3,500 Rs.14.00 January 06 Sales 8,000 Rs.20.00 January 09 Purchases 10,000 Rs.13.50 January 14 Sales 12,000 Rs.20.00 Required: Calculate Cost of Ending Inventory and Cost of Goods Sold using FIFO & LIFO method.
- Osama Traders uses the Perpetual Inventory System. Following are the concerning purchases and sales of merchandise (including opening balance) during the month of October, 2014.
Date |
Description |
Quantity |
Rate per unit |
January 01 |
Opening balance |
6,000 |
Rs.12.00 |
January 03 |
Purchases |
4,500 |
Rs.13.00 |
January 04 |
Sales |
2,500 |
Rs.15.00 |
January 05 |
Purchases |
3,500 |
Rs.14.00 |
January 06 |
Sales |
8,000 |
Rs.20.00 |
January 09 |
Purchases |
10,000 |
Rs.13.50 |
January 14 |
Sales |
12,000 |
Rs.20.00 |
Required:
Calculate Cost of Ending Inventory and Cost of Goods Sold using FIFO & LIFO method.
- The Salman company has provided the following information about beginning balance and purchases of direct material for the month of June, 2017:
- June 01: Beginning balance; 800 units @ $20 per unit.
- June 05: Purchases; 1200 units @ $22 per unit.
- June 09: Purchases; 1600 units @ $24 per unit.
- June 11: Purchases; 400 units @ $25 per unit.
- June 15 Purchases 3,600 units @ $11.20 per units.
- June 17: Purchases; 4,000 units @ $13.50 per units.
- June 21: Purchases; 5,000 units @ $10.80 per units.
- June 27: Purchases; 2,000 units @ $10.20 per units.
At the end of the June 2017, the company makes a physical measure of material and finds that 13,100 units of material were sold with the description that 10,000 units @ $30 per unit and the remaining were sold @ $34 per unit with 10% discount on each.
Required: Compute inventory on June 30th, 2017, cost of goods sold for the month of June and determine the gross profit using following inventory costing methods:
- First in, first out (FIFO) method
- Last in, first out (LIFO) method
- Average cost method
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