Vishnu Company

The following information is available concerning Vishnu Company.

Units Unit Costs

Beginning Inventory 200 Rs. 10

Purchases:

March 5 300 Rs. 11
June 12 400 Rs. 12
August 23 250 Rs. 13
October 2 150 Rs. 15

Vishnu Company sold 1000 units for Rs. 22 each during the year. Sales occurred on the
following dates.

Sales:

Dates Units

Feb 12 150
April 30 200
July 7 200
September 6 300
December 3 150

On December 5
th
, 100 units destroyed in fire and Insurance Company paid a claim of
Rs.800/-

Required:

A. Calculate ending inventory and cost of goods sold using both periodic and
perpetual inventory system for each of the following three methods:
- FIFO
- LIFO
- Weighted Average

B. Assume the use of periodic and perpetual inventory system and tax rate of 30%.
How much more or less will the Vishnu Company pay in taxes by using FIFO,
LIFO and Weighted Average method? Explain your answer.