Kumar and Sons” provided you following information on its inventory acquisitions 10 6 10 Beginning inventory as on 1s, Shrawan, 2072: 1, 775 units @ Rs. 12. Purchases: Shrawan 6 : 12,000 units @ Rs.11 Bhadra 12 10,000 units @ Rs.10 Aswin 18 : 11,000 units @ Rs.9.5 Kartik 24 : 8,000 units @ Rs.9 Mangsir 30 : 9,000 units @ Rs.8 On Mangsir 30, the company had 3,000 units in hand. The company’s operating and selling expenses was Rs.80,000 The corporate tax rate is 25%. Required: a. Calculate cost of goods sold and cost of inventory under following inventory valuation method& i. FIFO ii. LIFO iii. Weighted average. D. Which method do you recommend so that Kumar and Sons pays the least amount of tax? Explain your answer.
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