Case Study 2.

Transaction	No. of Units	Unit Cost
Beginning Inventory	20	Rs 2200
Purchase	25	Rs2,250
Sold	10
Sold	14
Purchase	15	Rs2,300
Sold	26
Purchase	20	Rs2,350

According to the table above, there are 30 units in the ending inventory. Calculate What is the Cost of Goods Sold and Ending Inventory under each of the following assumptions?

1. FIFO/Periodic
2. LIFO/Periodic
3. Average Cost/Periodic
4. In the above example, Which Costing methods will show maximum Gross Profit in the Final Balance Sheet at the end of the year.

Case Study 3.

M/s OMICRON is a company engaged in the manufacture of components required for Luggage X-Ray Machines installed at Airports. The following data is available from the records of the company for a component no. 4325ZCT.

Annual Demand = 60,000 Ordering cost = $25 per order

Holding cost = $3 per item per year No. of working days per year = 240

If lead time = 3 days

1. Calculate EOQ
2. Calculate Reorder point