Navkar ltd. was following LIFO method of valuation of stock. Due to promulgation of revised accounting standard, they want to switch over to FIFO method. From the following information: [12 Marks] a) Draw up stock ledger under FIFO method of valuation of stocks. b) Find out the closing stock and cost of materials consumed. Opening stock 5000 MT @ Rs. 22 per MT Rs. 110000 Purchases: Issues: 1.6.99 1000 mt @ rs. 30 per mt 1 – 5.6.99 2000 mt 5.6.99 2000 mt @ rs. 35 per mt 6 – 10.6.99 3000 mt 10.6.99 1500 mt @ rs. 38 per mt 11 – 20.6.99 4000 mt 15.6.99 1500 mt @ rs. 35 per mt 21 – 25.6.99 3000 mt 20.6.99 2000 mt @ rs. 32 per mt 26 – 30.6.99 3000 mt 28.6.99 2000 mt @ rs. 35 per mt 30.6.99 1500 mt @ rs. 30 per mt
Answers
Answer:
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"576500"
Explanation:
Date Quantity of Units Price per Unit Amount
1999
June
1. 1000 30 30000
5. 2000 35 70000
10. 1500 38 57000
15. 1500 35 52500
20. 2000 32 64000
25. 3000 26 78000
28. 2000 35 70000
30. 1500 30 45000
14500 466500
Opening Stock = 5000 x 22 = 110000
Therefore, 110000 + 466500 = 576500 is the cost of materials consumed