Question No 01: (5 marks)

Mr. Ikram – sole proprietor established a small company for dealing in leather products. During April 2017, company’s books of accounts show the following information as:

Cost of goods manufactured                         Rs. 760,000 for 4,200 units

Finished goods inventory on 1st April            Rs. 52,000 for 1,800 units

Finished goods inventory on 30th April          430 units

Requirement:

By considering the above mentioned information, you need to:

 Calculate closing finished goods amount

 Prepare Cost of goods sold statement

Question No 02: (5 marks)

150 units of product “Alpha” at Rs. 12.5 per unit were in store on 1st April, 2017. During the month company made some receipts and payment of stock which are given as:

April 05        received        120 units @ Rs. 13.25 per unit

April 11        issued           100 units

April 19        received        80 units @ Rs. 14.00 per unit

April 26        issued           210 units

Requirement:

With the help of above mentioned information and Weighted Average method, you need to calculate the

 Cost of purchases

 Cost of sales

 Cost of ending inventory

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