Latest Activity In Study Groups

Join Your Study Groups

VU Past Papers, MCQs and More

ABC Enterprise presents the following information relating to operations:

                            

Inventories – opening  

10 Units @ Rs. 100 per Unit

Purchases on July 12, 2016

05 Units @ Rs. 120 per Unit

Sales on July 15, 2016           

12 Units @ Rs. 150 per Unit

 

 

Required:

 

  1. What would be the cost of closing inventory as on July 16, 2016 to be reported in balance sheet by using following methods of inventory valuation?
    1. FIFO
    2. LIFO
  2. Which method of inventory valuation is NOT recommended by International Accounting Standards (IAS) for presenting the value of inventory in financial statements?
  3. Give valid arguments in favor of method NOT recommended by IAS for presenting the value of inventory in balance sheet

Views: 4387

Replies to This Discussion

Please Discuss here about this GDB.Thanks

Our main purpose here discussion not just Solution

We are here with you hands in hands to facilitate your learning and do not appreciate the idea of copying or replicating solutions.

MGT 101 (Finantial accounting ) due date 15 July - 18 July

Topic to be tested:

Methods of Inventory Valuation

Learning Objectives:

To develop an understanding about FIFO and LIFO methods of inventory valuation.
To understand the practical implication of inventory valuation and its impact on financial statements.

Discussion Question:

ABC Enterprise presents the following information relating to operations:

Inventories – opening

10 Units @ Rs. 100 per Unit

Purchases on July 12, 2016

05 Units @ Rs. 120 per Unit

Sales on July 15, 2016

12 Units @ Rs. 150 per Unit

Required:

What would be the cost of closing inventory as on July 16, 2016 to be reported in balance sheet by using following methods of inventory valuation?
FIFO
LIFO
Which method of inventory valuation is NOT recommended by International Accounting Standards (IAS) for presenting the value of inventory in financial statements?
Give valid arguments in favor of method NOT recommended by IAS for presenting the value of inventory in balance sheet.

fifo first in first out

lifo last in first out

Is question ko solve karna ha ka bus reazons likhne ha plz tell me and help me

answer 2. lifo is NOT recommended by International Accounting Standards (IAS) for presenting the value of inventory in financial statements
 what u say ppl?

PlZ KOe to batay kasa karna h

es gdb ki smj nai arhi helppppppp kr dein koi plzzzzzzzzzzz

3*120
3*100
prefer FIFO bcz it gain maximum profit

me ne std ko krw di ha

2 aur 3 que kiye hn?

Plz Muhammad zubair bata da kasa karna ha muja is ke bilkul samaj nahe aye

i)
10 Units @ Rs. 100 per Unit
10*100=1000
Purchases on July 12, 2016
05 Units @ Rs. 120 per Unit
5*120=600 so
1000+600=1600 now
Sales on July 15, 2016
12 Units @ Rs. 150 per Unit
10*150=1500
2*150=300=1500+300=1800
now remening 3 purchase wale
3*120=360 closing stock
10 Units @ Rs. 100 per Unit
10*100=1000
Purchases on July 12, 2016
05 Units @ Rs. 120 per Unit
5*120=600 so
1000+600=1600 now
Sales on July 15, 2016
12 Units @ Rs. 150 per Unit
5*150=750
7*150=1050
so 750+1050=1800
now remening opening wale
3*100=300
closing stock
FIFO =360
Life =300
2)
lifo is NOT recommended by International Accounting Standards (IAS) for presenting the value of inventory in financial statements
3) we recommended FIFO method because the organization gaining maximum profitbilty by IAS for presenting the value of inventory in balance sheet

RSS

© 2021   Created by + M.Tariq Malik.   Powered by

Promote Us  |  Report an Issue  |  Privacy Policy  |  Terms of Service