A company provides you the following information related to the inventories for the month of Asadh. Asadh 1: Beginning inventory 500 units @ Rs.10…
BBS Financial Accounting and Analysis · 2083 · Solved Question with Answer
A company provides you the following information related to the inventories for the month of Asadh.
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Asadh 1: Beginning inventory 500 units @ Rs.10 each
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Asadh 10: Purchased 1,000 units @ Rs.14 each
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Asadh 15: Sold 1,200 units @ Rs.15 each
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Asadh 20: Purchased 500 units @ Rs.12 each
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Asadh 27: Purchased 200 units @ Rs.10 each
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Asadh 31: Sold 500 units @ Rs.20 each.
Required:
a. Cost of goods sold and ending inventory under LIFO and FIFO method.
b. Income statement under both methods, assuming operating expenses Rs. 4,000 and estimated tax @ 25%