05-26-2014, 03:27 PM
Question No #2
Calculate Gross profit under both methods If selling price of SP001 is Rs.250 per unit.
In case of FIFO:
Unit Sold=150+80=230
Sale Price= 230×250= 57,500
Cost= 19,500+4,500=24,000
Gross Profit=57,500-24,000=33,500
In case of Weighted Average Method
Cost=21,300+12391.2=33691.2
Gross Profit= 57,500- 33691.2= 23,808.8
Calculate Gross profit under both methods If selling price of SP001 is Rs.250 per unit.
In case of FIFO:
Unit Sold=150+80=230
Sale Price= 230×250= 57,500
Cost= 19,500+4,500=24,000
Gross Profit=57,500-24,000=33,500
In case of Weighted Average Method
Cost=21,300+12391.2=33691.2
Gross Profit= 57,500- 33691.2= 23,808.8