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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