Osama Traders uses the Perpetual Inventory System. Following are the concerning purchases and sales of merchandise (including opening balance) during the month of October, 2014.DateDescriptionQuantityRate per unitJanuary 01Opening balance6,000Rs.12.00January 03Purchases4,500Rs.13.00January 04Sales2,500Rs.15.00January 05Purchases3,500Rs.14.00January 06Sales8,000Rs.20.00January 09Purchases10,000Rs.13.50January 14Sales12,000Rs.20.00Required:Calculate Cost of Ending Inventory and Cost of Goods Sold using FIFO & LIFO method. The Salman company has provided the following information about beginning balance and purchases of direct material for the month of June, 2017:June 01: Beginning balance; 800 units @ $20 per unit.June 05: Purchases; 1200 units @ $22 per unit.June 09: Purchases; 1600 units @ $24 per unit.June 11: Purchases; 400 units @ $25 per unit.June 15 Purchases 3,600 units @ $11.20 per units.June 17: Purchases; 4,000 units @ $13.50 per units.June 21: Purchases; 5,000 units @ $10.80 per units.June 27: Purchases; 2,000 units @ $10.20 per units.At the end of the June 2017, the company makes a physical measure of material and finds that 13,100 units of material were sold with the description that 10,000 units @ $30 per unit and the remaining were sold @ $34 per unit with 10% discount on each.Required: Compute inventory on June 30th, 2017, cost of goods sold for the month of June and determine the gross profit using following inventory costing methods:First in, first out (FIFO) methodLast in, first out (LIFO) methodAverage cost method

Name: Osama Traders uses the Perpetual Inventory System. Following are the c
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Description: Osama Traders uses the Perpetual Inventory System. Following are the concerning purchases and sales of merchandise (including opening balance) during the month of October, 2014.DateDescriptionQuantityRate per unitJanuary 01Opening balance6,000Rs.12.0

LIFO means last in first out where as FIFO means first in first out. Inventory and cost of goods…

Answered: Osama Traders uses the Perpetual…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter7: Inventories: Cost Measurement And Flow Assumptions

Section: Chapter Questions

Problem 9RE: RE7-8 Johnson Company uses a perpetual inventory system. On October 23, Johnson purchased 100,000 of...

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Osama Traders uses the Perpetual Inventory System. Following are the concerning purchases and sales of merchandise (including opening balance) during the month of October, 2014.

Date	Description	Quantity	Rate per unit
January 01	Opening balance	6,000	Rs.12.00
January 03	Purchases	4,500	Rs.13.00
January 04	Sales	2,500	Rs.15.00
January 05	Purchases	3,500	Rs.14.00
January 06	Sales	8,000	Rs.20.00
January 09	Purchases	10,000	Rs.13.50
January 14	Sales	12,000	Rs.20.00

Required:

Calculate Cost of Ending Inventory and Cost of Goods Sold using FIFO & LIFO method.

The Salman company has provided the following information about beginning balance and purchases of direct material for the month of June, 2017:

June 01: Beginning balance; 800 units @ $20 per unit.
June 05: Purchases; 1200 units @ $22 per unit.
June 09: Purchases; 1600 units @ $24 per unit.
June 11: Purchases; 400 units @ $25 per unit.
June 15 Purchases 3,600 units @ $11.20 per units.
June 17: Purchases; 4,000 units @ $13.50 per units.
June 21: Purchases; 5,000 units @ $10.80 per units.
June 27: Purchases; 2,000 units @ $10.20 per units.

At the end of the June 2017, the company makes a physical measure of material and finds that 13,100 units of material were sold with the description that 10,000 units @ $30 per unit and the remaining were sold @ $34 per unit with 10% discount on each.

Required: Compute inventory on June 30^th, 2017, cost of goods sold for the month of June and determine the gross profit using following inventory costing methods:

First in, first out (FIFO) method
Last in, first out (LIFO) method
Average cost method

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