The LIFO method is only briefly exaplined in the Textbook without even one solved problem. Please explain the following problem using the 'Stock Ledger' format.
Date Receipts (Units) Price per unit (Rs.) Issues (Units)
01.12.2005 2000 (Opening) 5 00
07.12.2005 1000 6.00
10.12.2005 - - 2500
15.12.2005 2000 6.50
31.12.2005 - - 2200
On 31.12.2005, a shortage of 100 units was found.
(i) Find the value of closing stock using LIFO principle.
(a) Rs.1900 (b) Rs.2400 (c) Rs.2000 (d) Rs.1000
(ii) Using the data given in problem, the value of assets in the month of December 2005 using LIFO principle.
(a) Rs.35000 (b) Rs.28000 (c) Rs.20000 (d) Rs.65000
(iii) Using the data given in problem, the value of closing stock using simple average principle.
(a) Rs.950 (b) Rs.875 (c) Rs.1000 (d) Rs.1300 (e) Rs.750
(iv) Using the data given in problem, the value of issues in the month of December 2005 using simple average method.
(a) Rs.15385 (b) Rs.21675 (c) Rs.19750 (d) Rs.28125
Thanks in advance,
Rat65
CAclubindia
