ASSIGNMENT NO. 01 DUE DATE: 22ND NOV, 2017
Assignment XYZ co. has the following purchases patterns for the month of august:
August 1 100 units @ Rs. 11.00
12 90 units @ Rs. 9.50
15 50 units @ Rs. 9.50
20 90 units @ Rs. 9.40
Units sold during the month were:
August 10 70 units
14 100 units
30 95 units
(i) Draw inventory valuation tables for August as per two IAS suggested valuation methods (consult book and video lectures for approved inventory valuation methods).
(ii) A physical inventory count revealed a shortage of five units. Show how you would bring this into account.
(iii) Also determine the cost of sales and gross profit under the both methods from the following information: a. Sale price of a unit is Rs. 15 (Amount of direct material will be taken from the requirement (i)) and also treat the cost of lost units in calculation of gross profit.
(iv) You are required to give some logical reasons that why LIFO method has been obsoleted and declared not to be used method for inventory valuation.DOWNLOAD SOLUTION HERE