Management Accounting(New)

Question: The following information is extracted from stores ledger in respect of material X.

Opening Stock	Nil
Purchases
Jan. 1	100@Re. 1 per Unit
Jan.20	100@ Re. 2 per Unit
Issues
Jan. 22	60 for job W16
Jan. 23	60 for job W17

Complete the receipts and issues valuation by adopting the FIFO, LIFO and Weighted Average method.

Solution: Valuation of receipts: (for all methods)

jan.1(100*1.00) =  Rs. 100

jan.20(100*2.00) = Rs. 200

……………………………..

Total Units =200

Total Cost = Rs. 300

 

Weighted Average Rate = Total Cost / Total Units =300/200= Rs. 1.50 per Unit

 

Valuation of Issues

(1)   Issues Date	FIFO			LIFO			Weighted Average
	Qty. Unit	Rate Rs.	Amt. Rs.	Qty. Unit	Rate Rs.	Amt. Rs.	Qty. Unit	Rate Rs.	Amt. Rs.
Jan. 22-W16 Jan. 23-W17       (2) Closing Stock	60 40 20     80	1.00 1.00 2.00     2.00	60.00 40.00 40.00 140.00   160.00	60 40 20     80	2.00 2.00 1.00     1.00	120.00 80.00 20.00 220.00   80.00	60 60       80	1.50 1.50       1.50	90.00 90.00   180.00   120.00