Question

Assignment Question(s):                                                   (Marks. 5)

Q1. Choose a Saudi corporation and find its statement of financial position for 2019 and the related notes. Discuss and analyze the statement in light of things you studied in chapter 5. Answer should be no less than 300 words. (2 mark)

Answer:

Q2. Discuss the different methods to account for cash discount. Support you answer with examples. (1 mark).

Answer:

Q3. During April, the following changes in the single inventory product took place: (2 mark).

          April   1     Balance                        1,400 units @ $24

                      8     Purchased                      900 units @ $36

                    12     Purchased                      700 units @ $30

                    24     Purchased                      400 units @ $50

                    10     Sold                              1,500 units @ $40

                    26     Sold                              1,700 units @ $44

Calculate the COGS after each sales transaction and the ending inventory after each transaction under the following methods.

(a)   FIFO.

(b)   Average Cost. (Round numbers to the nearest 10)

Answer:

Answer 1

Solution:

FIFO means First in first out.the goods which are purchased first must be sold first

First in First out (FIFO)

Average cost method