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Q#4     Karim Trading Company show the following transaction show the purchases and sales of merchandise during the year January 01, Inventory | 1,000 Units @ Rs. 10. January 10, Purchase on account | 5,000 Units @ Rs. 110 January 15, Sales on Account | 4,000 Units @ Rs. 312 January 18, Purchase on Cash | 3,000 Units @ Rs. 120 January 20, Sales on Account | 4,000 Units @ Rs. 322 January 25, Purchase on Cash | 6,000 Units @ Rs. 130 January 30, Sales on Cash | 5,000 Units @ Rs. 320 Required: Compute the cost of ending inventory under the perpetual system on Jan 31, 2011 using the Last In First Out (LIFO).

Q#4     Karim Trading Company show the following transaction show the purchases and sales of merchandise during the year January 01, Inventory | 1,000 Units @ Rs. 10. January 10, Purchase on account | 5,000 Units @ Rs. 110 January 15, Sales on Account | 4,000 Units @ Rs. 312 January 18, Purchase on Cash | 3,000 Units @ Rs. 120 January 20, Sales on Account | 4,000 Units @ Rs. 322 January 25, Purchase on Cash | 6,000 Units @ Rs. 130 January 30, Sales on Cash | 5,000 Units @ Rs. 320 Required: Compute the cost of ending inventory under the perpetual system on Jan 31, 2011 using the Last In First Out (LIFO).

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Q#4     Karim Trading Company show the following transaction show the purchases and sales of merchandise during the year

January 01, Inventory | 1,000 Units @ Rs. 10.

January 10, Purchase on account | 5,000 Units @ Rs. 110

January 15, Sales on Account | 4,000 Units @ Rs. 312

January 18, Purchase on Cash | 3,000 Units @ Rs. 120

January 20, Sales on Account | 4,000 Units @ Rs. 322

January 25, Purchase on Cash | 6,000 Units @ Rs. 130

January 30, Sales on Cash | 5,000 Units @ Rs. 320


Required: Compute the cost of ending inventory under the perpetual system on Jan 31, 2011 using the Last In First Out (LIFO).

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