Inventory valuation under First In First Out.

A bulk distributor of petrol who uses Periodic Inventory System provides you the following data after Physical Verification of the Inventory at the end of the month when books are closed:
Sales Rs.1352000
General Administration Cost Rs.20000
Opening Inventory: 120000 litres @Rs.2.85 per litre Rs.342000
Purchases (including freight inward)
Sept. 01, 300000 litres @ Rs.3 per litre Rs.900000
Sept. 30, 130000 litres @ Rs.2.90 per litre Rs.377000
Sept. 30, closing inventory 150000 litres
Use the above information to answer Q. No. 1 to 9

Q.1. Compute the value of closing stock using FIFO Method.

(a) Rs.437000 (b) Rs.455000 (c) Rs.473000 (d) Rs.450000

Q.2. Compute Cost of Goods Sold using FIFO method for the month of Sept.

(a) Rs.1180000 (b) Rs.1182000 (c) Rs.1082000 (d) Rs.1080000

Q.3. Compute Net Profit/Net Loss using FIFO method of inventory valuation.

(a) Rs.180000 (b) Rs.152000 (c) Rs.150000 (d) Rs.162000

Q.4. Compute the value of closing inventory using Weighted Average Method.

(a) Rs.441545 (b) Rs.450000 (c) Rs.414545 (d) Rs.435000

Q.5. Compute Cost of Goods Sold using Weighted Average Method.

(a) Rs.1170000 (b) Rs.1177455 (c) Rs.1177555 (d) Rs.1150000

Q.6. Compute gross profit or loss using the Weighted Average Method.

(a) Rs.174545 (b) Rs.177545 (c) Rs.170545 (d) Rs.168545

Q.7. Compute the value of closing inventory using the LIFO Method.

(a) Rs.430000 (b) Rs.432000 (c) Rs.435000 (d) Rs.428000

Q.8. Compute Cost of Goods Sold using the LIFO Method.

(a) Rs.1189000 (b) Rs.1187000 (c) Rs.1170000 (d) Rs.1150000

Q.9. Compute the profit or loss using the LIFO Method of Inventory Valuation.

(a) Rs.165000 (b) Rs.145000 (c) Rs.175000 (d) Rs.150000

asked Mar 29, 2015 in Inventories. by Shekhar (54 points) 560 views

1 Answer

0 votes
I have solved the above questions and you can find the video at youtube on the following link:

answered Mar 29, 2015 by jbsclasses (3,971 points)