Q1.Maxim Company needed 3500 units of raw material every month starting from January till June due to the orders which it has received from a customer and also to satisfy the regular demand the company has. The company started to place its order with different suppliers as it was not able to find a single supplier to satisfy all its needs. They have to procure the raw materials from different suppliers at the prevailing market price. In the month of January and February, they purchased at the rate of RO12.25 per unit and RO.12.40 per unit respectively. Due to high demand for raw materials in March, they have to pay RO.12.70 per unit. But the prices in April and May were less when compared with March which stood at RO 12.5 per unit and RO 12.55 per unit respectively. In June, the company has bought the raw materials at RO 12.65 per unit. All the raw materials purchased are converted in to finished goods in that particular month itself. In order to convert the raw materials purchased to finished goods, the company has to spend an additional cost of 250 baiza for each unit. However, the company already had 3000 units of older stock that was purchased at RO 10 each (additional cost for manufacturing is included). The company sold 3900 units @ RO 14.5 per unit in February, 4600 units @ RO15.75 per unit in April and in June 5068 units @ RO16.25 per unit .The Company follows LIFO method of inventory valuation.

You are required to calculate ending inventory for the above transactions.

Q2.You are required to prepare Journal entries for the above Question No.1 using perpetual and periodic inventory system.

Q3. Ms. Sara has started a Furniture Manufacturing Company and opened a Business bank account in Bank Muscat and every month end he checks his Cash book maintained by his accountant Mr. Ali in the company with the Bank book maintained by the banker. His Cash Book balance on 31st December 2019, was OMR 22,500, this did not agree with the balance as shown by the Bank Pass Book. In order to know why the balances are not equal in cash book and Bank book Sara asked his accountant Mr. Ali to do detail Examination of the Cash Book and Bank Statement. It reveals that the company has paid into bank on 26th December, four cheques of OMR 7,000; OMR 10,000; OMR 2,000 and OMR 13,000; of these the cheque of OMR 2,000 was credited in January 2020.Sara has invested money in shares of Al Maha Company and the bank has collected dividends and Credited in Bank Book, but not debited in Cash Book OMR 1,750.The Bank has debited Bank Charges in Bank book, not entered in Cash Book OMR 100.As per the instructions of Sara, Bank met a pay order and debited in Bank Book, but not entered in Cash Book OMR 900. Cheque received from Yasin sent to Bank without recording in Cash Book OMR 1,000.Sara issued Cheques to her creditors on 23rd December 2019, cheque to Ahmed for OMR 3,000 and cheque to Abeer OMR 4,000. But the cheque of Ahmed was presented after 31st December 2019. Every year end Bank pays Insurance Premium on behalf of Sara which is not entered in Cash Book OMR 400.Bank also credited for Interest received by Sara which is not recorded in Cash Book OMR 350.Sara has received cheque of OMR 900 from Mr. Khamis which was dishonored but it was not recorded in companys Cash Book. One of his customer Ali has paid cheque of OMR 11,500 which is entered in cash book but omitted to be sent to Bank

Based upon the following information you are required to prepare a Bank Reconciliation Statement.

Q1.Maxim Company needed 3500 units of raw material every month starting from January till June due to the orders which it has received from a customer and also to satisfy the regular demand the company has. The company started to place its order with different suppliers as it was not able to find a single supplier to satisfy all its needs. They have to procure the raw materials from different suppliers at the prevailing market price. In the month of January and February, they purchased at the rate of RO12.25 per unit and RO.12.40 per unit respectively. Due to high demand for raw materials in March, they have to pay RO.12.70 per unit. But the prices in April and May were less when compared with March which stood at RO 12.5 per unit and RO 12.55 per unit respectively. In June, the company has bought the raw materials at RO 12.65 per unit. All the raw materials purchased are converted in to finished goods in that particular month itself. In order to convert the raw materials purchased to finished goods, the company has to spend an additional cost of 250 baiza for each unit. However, the company already had 3000 units of older stock that was purchased at RO 10 each (additional cost for manufacturing is included). The company sold 3900 units @ RO 14.5 per unit in February, 4600 units @ RO15.75 per unit in April and in June 5068 units @ R016.25 per unit .The Company follows LIFO method of inventory valuation You are required to calculate ending inventory for the above transactions (5 Marks) Q2. You are required to prepare Journal entries for the above Question No.1 using perpetual and periodic inventory system. (5 Marks) Q3. Ms. Sara has started a Furniture Manufacturing Company and opened a Business bank account in Bank Muscat and every month end he checks his Cash book maintained by his accountant Mr. Ali in the company with the Bank book maintained by the banker. His Cash Book balance on 31" December 2019, was OMR 22,500, this did not agree with the balance as shown by the Bank Pass Book. In order to know why the balances are not equal in cash book and Bank book Sara asked his accountant Mr. Ali to do detail Examination of the Cash Book and Bank Statement. It reveals that the company has paid into bank on 26th December, four cheques of OMR 7,000; OMR 10,000; OMR 2,000 and OMR 13,000; of these the cheque of OMR 2,000 was credited in January 2020.Sara has invested money in shares of Al Maha Company and the bank has collected dividends and Credited in Bank Book, but not debited in Cash Book OMR 1,750.The Bank has debited Bank Charges in Bank book, not entered in Cash Book OMR 100.As per the instructions of Sara, Bank met a pay order and debited in Bank Book, but not entered in Cash Book OMR 900. Cheque received from Yasin sent to Bank without recording in Cash Book OMR 1,000.Sara issued Cheques to her creditors on 23'd December 2019, cheque to Ahmed for OMR 3,000 and cheque to Abeer OMR 4,000. But the cheque of Ahmed was presented after 31" December 2019. Every year end Bank pays Insurance Premium on behalf of Sara which is not entered in Cash Book OMR 400.Bank also credited for Interest received by Sara which is not recorded in Cash Book OMR 350.Sara has received cheque of OMR 900 from Mr. Khamis which was dishonored but it was not recorded in company's Cash Book. One of his customer Ali has paid cheque of OMR 11,500 which is entered in cash book but omitted to be sent to Bank Based upon the following information you are required to prepare Reconciliation Statement. (5 Marks) Bank