Section C: 4(a) Afnan Traders makes the following purchases and issues during the month of November 2019 (a) Cost of Ending Merchandise Inventory = (b) The Cost of Goods Sold = 4 (b) While making valuation of inventory of a manufacturing company, how would you choose between methods of inventory valuation (FIFO or LIFO) for ending inventory and cost of goods sold? Is it possible for you to change the method whenever you want, discuss. (4 Marks) Answer 4(b): FIFO METHOD Date Transactions Quantity Per Unit 2019 UNITS OMR Nov. 1 Inventory Beginning 100 10 5 Purchases 200 11 9 Purchases 300 12 16 Sales 550 26 Purchases 400 13 31 Sales 250 REQUIRED: Determine the (a) Cost of Ending Merchandise Inventory, (b) The Cost of Goods Sold under Perpetual Inventory System by FIFO Method Answer 4(a): Afnan Traders FIFO (Perpetual) Date PURCHASES SALES BALANCE 2019 Quantity Rate Amount Quantity Rate Amount Quantity Rate Amount Nov. (OMR) (OMR) I OMR) (OMR) OMR) (OMR) Answer 4(a): Afnan Traders FIFO (Perpetual) PURCHASES SALES BALANCE 2019 Quantity Rate Amount Quantity Rate Amount Quantity Rate Amount Nov. (OMR) (OMR) OMR) (OMR) (OMR) (OMR) Date (a) Cost of Ending Merchandise Inventory = (b) The Cost of Goods Sold = 4(b) While making valuation of inventory of a manufacturing company, how would you choose between methods of inventory valuation (FIFO or LIFO) for ending inventory and cost of goods sold? Is it possible for you to change the method whenever you want, discuss (4 Marks) (a) Cost of Ending Merchandise Inventory = (b) The Cost of Goods Sold = 4(b) While making valuation of inventory of a manufacturing company, how would you choose between methods of inventory valuation (FIFO or LIFO) for ending inventory and cost of goods sold? Is it possible for you to change the method whenever you want, discuss (4 Marks)