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Mr. Amir is material manager in Luckystar Hypermarket located in Muscat. He is responsible for purchasing of material. He is very well experienced in purchasing

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Mr. Amir is material manager in Luckystar Hypermarket located in Muscat. He is responsible for purchasing of material. He is very well experienced in purchasing like purchase as per requirement, purchased as per market condition, purchase in group, purchase on contract, co-operative purchase etc. Speculative purchase he avoided as he does not willing to invest his money for future benefit. Out of listed above he purchases material whenever he needs it. He does not purchase material in advance as it blocks the fund. He follows all the formal procedure of purchases like starting from receiving purchase requisition from all department till making the payment to supplier. Mr. Amir knows LIFO, FIFO, Simple Average Method and Weighted Average Method as material issue pricing. Mostly he prefers FIFO method as his most product based on latest trend, fashion etc. Further, in simple average method he considers average of price of the material, and in weighted average method he considers both price and quantities of material. Mr. Amir take all the possible efforts to save material losses. Many times, he has seen material get loss due to waste, scrap, spoilage and defect too. Mr. Amir categorized his losses as normal loss and abnormal loss. As per nature of loss he transfers the lost amount to the concerned record. Based on this information you are expected to answer following questions. 9 Mr.Amir has furnished the following details, On 10 April 2020 the opening stock 100 units @ OMR1.75; on 15 April 2020 he purchased 150 units @ OMR 1.50 and on 20 April 2020 material Issues of 200 units Based on this information what will be the closing stock by LIFO Method: of a. OMR 225 b. OMR 75 c. OMR 87.5 d. OMR 175 0 If Mr. Amir purchase material for OMR 20.250, OMR 21.260, OMR 22.270.Calculate the average of issuing material as per simple average method: of a. 21.26 b. 21.27 c. 21.28 d. 21.25 Next page

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