Problem 1

Use the following information of Fatima Malik and Co.

A company just starting business made the following four inventory purchases in June 2016:

June 1150 units Rs. 6.60/unit costRs. 990

June 10200 units Rs. 6.30/unit costRs. 1,260

June 15200 units Rs. 5.85/unit costRs. 1,170

June 28150 units Rs. 5.20/unit costRs. 780

Rs.4,200

A physical count of merchandise inventory on June 30 reveals that there are 250 units on hand.

Requirement (a):Using the periodic LIFO inventory method, the value of the ending inventory on June 30 is?

Requirement (b):Using the periodic FIFO inventory method, the amount allocated to cost of goods sold for June is?

Problem 2

Adnan Naeem Imports, Ltd has the following information about the inventory of electronic components for October 2016.

Inventory, B..s@Rs. 32

October 5..s@Rs. 32

October 1..s@Rs. 31

October 2..s@Rs. 33

At the end of October, 220 components remained in inventory.

Requirement (a): If uses the FIFO method of allocating inventory, what would is the cost of goods sold for October?

Requirement (b): If company uses the FIFO method of allocating inventory costs, what would is the ending inventory?

Requirement (c): If company uses the average cost method of allocating inventory costs, what would is the ending inventory for October?

Problem 3

Malik Company uses a periodic inventory system. The beginning inventory of a particular product, and the purchases during the current year, were as follows:

Jan.1Beginning inventory...........................60units @Rs. 105=Rs. 6,300

Mar.8Purchase............................................30units @115=3,450

Aug.11Purchase.............................................90units @125=11,250

Oct.23Purchase ..........................................20units @135=2,700

Total available for sale.......................................200unitsRs. 23,700

At December 31, the ending inventory of this product consisted of 55 and selling price during year was Rs. 150

Using periodic costing procedures, determine:

(1) Cost of goods sold relating to this product and

(2) Cost of the year-end inventory under each (LIFO, FIFO and W. Avg.) of the flow assumptions?

Problem 4

Prepare Store Leger Card (FIFO, LIFO and Average) and Comparative Cost Sheet from the following data.

July 01 Balance b/d50 Units@10 Each

July 05 Purchases30 Units@12 Each

July 09 Purchases60 Units@9 Each

July 13 Sales70 Units@18 Each

July 23 Purchases40 Units@8 Each

July 26 Purchases20 Units@16 Each

July 30 Sales90 Units@19 Each

Problem 5

Prepare Store Ledger Card (SLC) from the following information for July.

1Beginning Inventory50 P..;@Rs. 20Rs. 1,000

2Purchases100 Pieces @Rs. 25Rs. 2,500

9Purchases50Pieces @Rs. 28Rs. 1,400

18Sales125 Pieces @Rs. 30Rs. 3,725

20Purchases85 P..;@Rs. 32Rs. 2,720

22Purchase100 Pieces @Rs. 34Rs. 3,400

27Sales150 Pieces @Rs. 29Rs. 4,350

Required:Determine the Cost of Sales, Cost of Closing Stock, Sales and Gross profit / loss under each of the following method by using perpetual inventory system, Cost are assigned on the basis of FIFO and Cost are assigned on the basis of Weighted Average.

Problem 6

Prepare Store Ledger Card (SLC) form the following information on Jan 2017:

1. Opening Stock400 units @ Rs. 30Rs. 12,000

2. Purchases200 units @ Rs. 28Rs. 5,600

15. Sales125 units @ Rs. 50 Rs. 6,250

21. Purchases80 units @ Rs. 25Rs. 2,000

27. Purchase100 units @ Rs. 32Rs. 3,200

29. Sales175 units @ Rs. 48Rs. 8,400

30. Sales 140 units @ Rs. 55 Rs. 7,700

Required

Determine the Cost of Sales, cost of Closing Stock and Gross profit under each of the following method by using perpetual inventory system.

1. Cost are assigned on the basis of LIFO

2. Cost are assigned on the basis of Weighted Average