SECTION-B Note: Attempt any four questions. Each question carries 5 marks. Q-1-From the given information, calculate the cost of inventory as well as the cost of goods sold using the (a) specific invoice, (b) weighted-average, (c) first-in, first-out, and (d) last-in, first-out methods. Goods Available for Sale Units Cost Total Additional Fact: Inventory Not Sold January 1 Beg. Inventory 40 @ $8 $ 320 40 from January 1 April 1 Purchased 20 @ 9 180 May 1 Purchased 20 @ 10 200 4 from May 1 October 1 Purchased 20 @ 12 240 4 from October 1 December 1 Purchased 20 @ 13 260 120 $1,200 Additionally, find out which method organization should follow in order to reduce taxes? [5 marks]
SECTION-B Note: Attempt any four questions. Each question carries 5 marks. Q-1-From the given information, calculate the cost of inventory as well as the cost of goods sold using the (a) specific invoice, (b) weighted-average, (c) first-in, first-out, and (d) last-in, first-out methods. Goods Available for Sale Units Cost Total Additional Fact: Inventory Not Sold January 1 Beg. Inventory 40 @ $8 $ 320 40 from January 1 April 1 Purchased 20 @ 9 180 May 1 Purchased 20 @ 10 200 4 from May 1 October 1 Purchased 20 @ 12 240 4 from October 1 December 1 Purchased 20 @ 13 260 120 $1,200 Additionally, find out which method organization should follow in order to reduce taxes? [5 marks]
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![SECTION-B
Note: Attempt any four questions. Each question carries 5 marks.
Q-1-From the given information, calculate the cost of inventory as well as the cost of goods sold
using the (a) specific invoice, (b) weighted-average, (c) first-in, first-out, and (d) last-in, first-out
methods.
Goods Available for Sale
Units
Cost
Total
Additional Fact:
Inventory Not Sold
January 1 Beg. Inventory
40
@
$8
$ 320
40 from January 1
April 1 Purchased
20
@
9
180
May 1 Purchased
20
@
10
200
4 from May 1
October 1 Purchased
20
@
12
240
4 from October 1
December 1 Purchased
20
@
13
260
120
$1,200
Additionally, find out which method organization should follow in order to reduce taxes?
[5 marks]](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F910fddfe-7224-4978-b014-1418630c8811%2F73952c5f-dff6-40eb-9f93-46dc0fb5b287%2Fgizu52o_processed.jpeg&w=3840&q=75)
Transcribed Image Text:SECTION-B
Note: Attempt any four questions. Each question carries 5 marks.
Q-1-From the given information, calculate the cost of inventory as well as the cost of goods sold
using the (a) specific invoice, (b) weighted-average, (c) first-in, first-out, and (d) last-in, first-out
methods.
Goods Available for Sale
Units
Cost
Total
Additional Fact:
Inventory Not Sold
January 1 Beg. Inventory
40
@
$8
$ 320
40 from January 1
April 1 Purchased
20
@
9
180
May 1 Purchased
20
@
10
200
4 from May 1
October 1 Purchased
20
@
12
240
4 from October 1
December 1 Purchased
20
@
13
260
120
$1,200
Additionally, find out which method organization should follow in order to reduce taxes?
[5 marks]
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