Do problem no.2

INVENTORY VALUATION 1. FIFO (FIRST IN FIRST OUT) Method 2. LIFO (LAST IN FIRST OUT) Method 3. WAC (WEIGHTED AVERAGE COST) Method Problem 1: Consider the following data for January, 2011 Date Particulars Quantity (units) Rs. Per unit 10 100 400 1300 200 11.2011 15.1.2011 16.1.2011 18.1.2011 20.1.2011 21.1 2011 30.1.2011 31.1 2011 Opening Stock Purchases Purchases Sales Purchases Sales Purchases Sales UNI 300 20 20 400 20 Problem 2: A perfume merchandising company is facing a scenario of rising prices. The beginning balance (opening inventory) of inventory is zero. The following table gives you the data of the company's purchases during the last year (it includes cost price per bottle of perfume and also details of the time and number of purchases and sales made). YEAR SALES BOTTLES COST PER RS, PRICE PURCHASE BOTTLE BOTTLES SALE PER RS PRICE BOTTLE 100 APRIL 2010 JUNE 2010 AUGUST 2010 OCTOBER 2010 DECEMBER 2010 6 8 10 200 200 200 200 200 100 100 100 100 You are required to tabulate the differences in the value of inventory under the LIFO, FIFO & WAC methods in the above scenario