3. () Global Company has the following data relating to inventory, purchases, and sales data for...

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3. (а) Global Company has the following data relating to inventory, purchases, and sales data for the month of March 2017 and records all the transactions under perpetual inventory system. Description Inventory: March 1 Quantity and Selling Price 200 units @ Tk. 4.00 Purchases: March 10 500 units @ Tk. 4.50 March 20 400 units @ Tk. 4.75 March 30 300 units @ Tk. 5.00 March 30 Purchase return 20 units @ Tk. 4.75 Sales: March 15 500 units @ Tk. 7.5 March 20 Sale return Sale return 15 @ Tk. 7.5 March 25 Instructions: Calculate (i) ending inventory, (ii) cost of goods sold and (iii) gross profit under each of the following methods. (1) LIFO. (2) FIFO. Which method of inventory system is better than other? 400 units @ Tk. 8 3. (а) Global Company has the following data relating to inventory, purchases, and sales data for the month of March 2017 and records all the transactions under perpetual inventory system. Description Inventory: March 1 Quantity and Selling Price 200 units @ Tk. 4.00 Purchases: March 10 500 units @ Tk. 4.50 March 20 400 units @ Tk. 4.75 March 30 300 units @ Tk. 5.00 March 30 Purchase return 20 units @ Tk. 4.75 Sales: March 15 500 units @ Tk. 7.5 March 20 Sale return Sale return 15 @ Tk. 7.5 March 25 Instructions: Calculate (i) ending inventory, (ii) cost of goods sold and (iii) gross profit under each of the following methods. (1) LIFO. (2) FIFO. Which method of inventory system is better than other? 400 units @ Tk. 8

Answer rating: 100% (QA)

Global Company Inventory Valuation for the month of March 2017 FIFO Method Perpetual Inventory System Date Receipts Issues Balance Unit Rate Tk Amount Tk Unit Rate Tk Amount Tk Unit Rate Tk Amount Tk ... View the full answer