Gul Ahmed

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  • Topic: 1967, 1981, Inventory
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  • Published : December 16, 2012
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POA - Assignment -5 (Farhan Mehboob) INVENTORY VALUATION Question 1
For the following transactions are related to Parashanlal Merchandizing Company. Income Tax is 10%; operating expenses are Rps 10,000. Compute Net Income, and calculate the value of inventory remaining at the end of the month using the following methods: 1 LIFO

2 FIFO
3 Weighted Average Method
No.| Date| Particulars|
01| Jan 01| Rps 100,000 worth of inventory remaining from last years, which was bought at Rps 50 per KG.| 02| Jan 01| Bought 3000 Kg at Rps 60 per kg.|
03| Jan 02| Bought 5000 Kg at Rps 55 per kg.|
04| Jan 03| Bought 7000 Kg at Rps 50 per kg.|
05| Jan 05| Sold 2000 Kg at Rps 70 per kg.|
06| Jan 06| Bought 10,000 Kg at Rps 45 per kg.|
07| Jan 08| Sold 5000 Kg at Rps 55 per kg.|
08| Jan 10| Bought 2,000 Kg at Rps 40 per kg.|
09| Jan 12| Sold 10,000 Kg at Rps 50 per kg.|
10| Jan 18| Bought 2,000 Kg at Rps 50 per kg.|
11| Jan 21| Sold 10,000 Kg at Rps 55 per kg.|
12| Jan 25| Bought 2,000 Kg at Rps 55 per kg.|
13| Jan 31| Sold 1,000 Kg at Rps 60 per kg.|
14| Jan 31| Sold 1,000 Kg at Rps 65 per kg.|
15| Jan 31| Sold 1,000 Kg at Rps 70 per kg.|
Question 2
For the following transactions of Heyra Pheri Expert Merchandizing , prepare the simplified income statement and value their ending inventory, using LIFO, FIFO, and Weighted Average Method, for the year ended 31st , December 2008. Assume the income tax is 10%, and operating expenses are 10,000: Jan 1, 20081,000kgRps 30From the previous year

Jan 10, 20085,000kgRps 40Purchased
Jan 10, 20081,000kgRps 50Sold
Jan 11, 20085,000kgRps 45Purchased
Jan 11, 20081,000kgRps 55Sold
Jan 12, 20085,000kgRps 45Purchased
Jan 12, 20081,000kgRps 55Sold
Perpetual Inventory Management System
In business and accounting/accountancy, perpetual inventory or continuous inventory describes systems of...
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