Question 04

Numerical: Gerald D. Englehart sells high performance bicycles, Company has the following inventory purchased. Amount in Rs. Purchase Date Units Purchased Unit Cost Total Cost June 01 5 700 3500 June 20 5 750 3,750 July 04 7 790 5530 Total 17 12780 On June 23, Gerald D. Englehart sold 8 bicycles. The remaining 9 bicycles remained in inventory as on September 30, the end of Gerald D. Englehart fiscal year. Required: (i) Compute the cost of goods sold relating to the sale of June 23 and ending inventory of bicycles at September 30. Using the Perpetual inventory system. 1. Average Cost Method 2. FIFO 3. LIFO (ii) Use the above data, compute the cost of goods sold relating to the sale of June 23 and ending inventory of bicycles at September 30. Using the Periodic inventory system. 1. Average Cost Method 2. FIFO 3. LIFO