The following transactions have taken place in respect of a material during March 2007Date,1Opening Balance 500 units @ Rs.6 per unit,5Purchased 100 units @ Rs.7 per unit,7Issued 400 units,9Purchased 300 units @ Rs.8 per unit,19Issued 250 units,22 Issued 50 units,25Purchased 300 units @ Rs.7.50 per unit,30Issued 250 units.Prepare the Stores Ledger assuming that the issues are valued on FIFO and LIFO.
Answers
Stock of 250 units will be valued @ Rs.4687.5 as per FIFO method and @ Rs. 1575 as per LIFO method.
Given:
Opening balance 500 units @ 6 per unit
5/3 Purchased 100 units @ 7 per unit
7/3 Issued 400 units
9/3 Purchased 300 units @ 8 per unit
19/3 Issued 250 units
22/3 Issued 50 units
25/3 Purchased 300 units @7.50 per unit
30/3 Issued 250 units.
To prepare:
Stores ledger account
Solution:
Stores ledger account as per FIFO
Date Receipts Issues Balance
Qty Rate Amount. Qty Rate Amount Qty Rate Amount
1/3 500. 6 3000
5/3 100 7 700 500. 6 3000
100 7 700
7/3 400 6 2400 100 6. 600
100 7 700
9/3. 300 8. 2400 100 6. 600
100 7 700
300 8. 2400
19/3. 100 6. 600
100 7 700
50 8 400 250 8 2000
22/3 50 8 400 200 8 1600
25/3 300 7.50 2250 200 8 1600
300 7.50 2250
200 8 1600
50 7.50 375 250 7.50 4687.5
Stores ledger account as per LIFO
Date Receipts Issues Balance
Qty Rate Amount. Qty Rate Amount Qty Rate Amount
1/3 500. 6 3000
5/3 100 7 700 500. 6 3000
100 7 700
7/3 100 7 2400
300 6 1800 200 6 1200
9/3. 300 8. 2400 200 6 1200
300 8. 2400
19/3. 250 8 2000 200 6 1200
50 8. 400
22/3 50 8 400 200 6 1200
25/3 300 7.50 2250 200 6 1200
300 7.50 2250
250 7.05 1762.5 200 6 1200
50 7.50 375
Therefore, closing stock of 250 units will be valued @ Rs.4687.5 as per FIFO method and @ Rs. 1575 as per LIFO method.
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