I want only answer of quistion 5

(6 Marks, Word Limit 50 - 100) Question 4: A) In current situation of COVID-19 where everything is uncertain, inventory management has become a challenging task. There are many inventories costing method used by different businesses. Remember that proper inventory management leads to success of business. If we see the government rules regarding lock down of the cities where virus is reported, then which inventory costing method do you suggest will be preferable in case if we have the inventory of; Medicine and lifesaving medicines Paints and household items Tires (3 Marks, Word Limit 100 - 150) B) Al Kalbani traders have few transactions in the last quarter of 2019. On Jan 01, the physical count of inventory was 250 units and unit cost was RO 16. On Jan 19, sold 176 units to Al Rahman Company at the price of Ro 21. On Jan 22, sold 15 units to Moosa Trader at price of RO 20. On Feb 02, purchased 100 units from Muscat Lights at the cost of RO 12. On Feb 17 sold 120 units to Yaqoob Trader at RO 18. On Feb 28 purchase 75 units at RO 14 from Al Hijaar Company. On Mar 04 purchased 25 units from Byco Incorporation at RO 15. On Mar 11 sold 130 units to Ibri Store at RO 20. You are required to show inventory costing schedule by using; LIFO Costing Method Average Costing Method (7 Marks, Word Limit 50 - 100) Question 5: A) By using transactions given in Question 4, you are required to pass journal entries under perpetual and periodic inventory method. B) Also calculate the gross profit of the company. (10 Marks, Word Limit 100 - 150) In the current situation of COVID 19 where countries facing lockdown situation in many parts and the manufacturing sector comes to a halt. In this case, FIFO (First in first out method) should be followed for inventory management as per industry perspective because there is a chance to sell their old inventory first which was produced at a lower cost and sell at the current market price which is higher in the current situation and secondly due to their shelf life. B) Inventory schedule as follows: LIFO Purchase Date Description Unit cost Total cost (RO) Unit Jan 01 Beginning Inventory COGS Unit cost Total cost Roliet 250 Ending Balance Ust cost Total cost (RO) 16 4000 Jan 09 Sold 176 16 2816 74 16 1184 Jan 22 Sold 15 16 240 59 16 944 Feb. 02 Purchase 100 12 1200 59 100 16 12 944 1200 Feb. 17 Sold 100 20 12 16 1200 320 39 16 16 624 Feb. 28 Purchase 75 14 1050 39 75 16 14 624 1050 Mar 04 Purchase 25 15 375 39 75 25 16 14 15 624 1050 375 Mar. 11 Sold 25 75 30 15 14 16 375 1050 480 9 16 144 Balance 6451 2 144 Ending Inventory = RO 144 Mar. 04 Purchase 25 15 375 39 5 25 139 13.484 14 15 14.03 [19511391 526 1050 375 1951 Balance Ma 11 Sold 130 14.03 18239 14.03 126 27 Balance 6497.98 ON 126.27