D. Enterprises provide you the following information related to the inventories for January 2022. Jan. 1 Beginning inventory 700 units @ Rs.10 each…
BBS Financial Accounting and Analysis · 2079 · Solved Question with Answer
D. Enterprises provide you the following information related to the inventories for January 2022.
Jan. 1 Beginning inventory 700 units @ Rs.10 each
Jan. 11 Purchased 1,000 units @ Rs.14 each
Jan. 17 Sold 1,200 units @ Rs.21 each
Jan. 20 Purchased 500 units @ Rs.14 each
Jan. 27 Purchased 200 units @ Rs.15 each
Jan. 31 Sold 500 units @ Rs.26 each.
Jan. 31. Stock verification found 50 units damage
Required:
a. Ending inventory and cost of goods sold under the LIFO and weighted average costing method using a periodic inventory system
b. Income statement under both method, assuming operating expenses Rs.5,000 and estimated tax @ 25%.