The stock on hand of a material as on Isept. 2018 was 500 units at Rs. I per unit. The following purchase and sales were made. Prepare the stores ledger account showing value of issue under FIFO and Weighted (both) methods
Purchases Issued 06-09-2018 100 units at Rs.1.10 09-09-2018 500 units 20-09-2018 700 units at Rs 1.20 22-09-2018 500 units 27-09-2018 400 units at Rs.1.30 30-09-2018 500 units
Answers
Stock of 200 units will be valued @ Rs.260 as per FIFO method and @ Rs. 510 as per WAM.
Given:
Opening balance 500 units @ 1 per unit
6/9/18 Purchased 100 units @ 1.10 per unit
9/9/18 Issued 500 units
20/9/18 Purchased 700 units @1.20 per unit
22/9/18 Issued 500 units
27/9/18 Purchased 400 units @1.30
30/9/18 Issued 500 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
1/9/18 500. 1 500
6/9/18 100 1.10 110 500 1 500
100 1.10 110
9/9/18 500 1 500 100 1.10 110
20/9/18 700 1.20 840 100 1.10 110
700 1.20 840
22/9/18 100 1.10 110
400 1.20 480 300 1.20 360
27/9/18 400 1.30 520 300 1.20 360
400 1.30 520
30/9/18 300 1.20 360
200 1.30 260 200 1.30 260
Stores ledger account as per WAM
Date Receipts Issues Balance
Qty Rate Amount. Qty Rate Amount Qty Rate Amount
1/9/18 500. 1 500
6/9/18 100 1.10 110 600 1.02 610
9/9/18 500 1.02 510 100 1 100
20/9/18 700 1.20 840 800 1.18 940
22/9/18 500 1.18 590. 300 1.20 350
27/9/18 400 1.30 520 700 1.24 870
30/9/18 500 1.24 360 200 2.55 510
Therefore, closing stock of 200 units will be valued @ Rs.260 as per FIFO method and @ Rs. 510 as per WAM.
#SPJ1