UNIVERSITY OF CENTRAL PUNJAB ASSIGNMENT 2 Course Financial Accounting Instructor: Mr.

r. Fakhar Naseem Afzal Section: (A) Total marks 34

Issue date: 19- 05 -2013 Submission date: 23-05-2013

STUDENT NAME: OMER ISHTIAQ AHMED REGISTRATION # L1S13MBAM2028 Q. NO. 1

i) ii) iii) iv) Year wise Revenue Cost of Goods Sold Gross Profit Ending Inventory

From the following information under FIFO,LIFO & AVERAGE methods Mr. A bought 100 units of inventory at a price of Rs. 10 each on 31-12-05(Last day of the year) to begin its business operations. The company bought & sold 100 units each of the following years at a Cost & Price given Cost per unit Year Sale price per unit 2006 2007 2008 2009 2010 20 25 30 35 25 30 32 36 40

A) FIFO Methods Yea Cost Sale r per per unit unit 200 5 200 6 200 7 200 8 200 9 201 0 -10 20 25 30 35 -25 30 32 36 40 --

Boug ht units 100 100 100 100 100 -Boug ht units 100 100 100 100 100 --

Sold unit 100 100 100 100 100 -Sold unit

Year wise Reven ue

2500 3000 3200 3600 4000 16300

Year wise Reve nue

Cost of goods sold 1000 2000 2500 3000 3500 1200

Gros Endin s g profit inven tory 1000 1500 1000 700 600 1500 4300 Gros s profi t 1000 1000 700 600 1000 4300 2000 2500 3000 3500 -Ending invent ory 1000 1500 2000 2500 3000 --

B) Average Year Cost per unit 2005 2006 2007 2008 2009 2010 -10 20 25 30 35 --

Methods

Sale per unit 25 30 32 36 40 --

100 100 100 100 100 --

Cost of good s sold 2500 1500 3000 2000 3200 2500 3600 3000 4000 3000 16300 1200 0
Cost of good s sold

C) LIFO Method
Year Cost per unit Sale per unit Boug ht units Sold unit Year wise Reven ue Gross profit Ending inventor y

2005 2006 2007 2008 2009 2010

10 20 25 30 35 -

25 30 32 36 40

100 100 100 100 100 -

100 100 100 100 100

2500 3000 3200 3600 4000

2000 2500 3000 3500 1000

500 500 200 100 3000

1000 1000 1000 1000 1000 -

--

--

--

--

--

16300

1200 0

4300

--

Q.no 2 Q- In which of the following statement opening stock is shown?

a) Profit and loss account b) Balance sheet c) Cash flow statement d) Owners equity

Ans: Profit and loss account R- Which of the following content(s) is (are) included in the Cost of goods sold?
a) Opening stock b) Purchases c) Freight in d) All of the given options

Ans : All of the given options S- Which of the following assets are shown at written down value in Balance Sheet?
a) Current assets b) Liquid assets c) Floating assets d) Fixed assets

Ans: Fixed assets T-Which of the following is (are) inventory valuation method(s)?
a) FIFO b) LIFO

c) Weighted average d) All of the given options

Ans: All of the given options U- The cost of an incomplete fixed asset is transferred to _________ as on Balance Sheet date.
a) Capital account b) Capital work in progress account c) Relevant asset account d) Owner's equity account

Ans: Capital work in progress account