ASSIGNMENT TWO

BAFII2/BAC 212
DUE DATE: VALENTINES DAY.
TIME: 17HRS
GROUP ASSIGNMENT
INSTRUCTIONS: MAINTAIN THE SAME GROUPS AND ACCOMMODATE NEW ENTRANTS.

QUESTION ONE.
Manny Proprietorship has a single product on offer for sale (Mongu rice) whose selling price has
continuously increased in the market due to favorable publicity on social media. As at March 1
2019, Manny had inventories that amounted to 15,000 units with a unit cost of K10. The
purchases and sales made in the months March to May 2019 are presented in the table below:
DATE DETAILS NO. OF UNITS UNIT COST SELLING PRICE
March 10 Purchases 13,000 K15
March 11 Sales 8,000 K30
March 21 Purchases 15,000 K20
March 22 Sales 10,000 K35
April 5 Purchases 14,000 K22
April 18 Purchases 6,000 K25
April 20 Sales 16,000 K40
May 5 Purchases 7,000 K24
May 10 Sales 10,000 K42
May 22 Purchases 6,000 K26
May 25 Sales 14,000 K45

Required:
a. Compute the cost of Manny’s inventory count available on hand and the cost of goods
sold as at May 31 based on the periodic method using
i. FIFO method
ii. LIFO Method and,
iii. Weighted Average Cost Method (6 MARKS)
b. Repeat the calculations in A. above but using the perpetual method.