Need help from all....Preparing for CPT on my own..

CPT 595 views 1 replies

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

Replies (1)

HELLO FRND! WELL IF U DON'T MIND,I'D RECOMMEND TO LEAVE THIS PROBLEM AND FOCUS ON THE CONCEPT,THATS MORE IMPO. SEE ITS CPT LEVEL,THE QUES. WOULD NOT BE THAT LENGTHY.....................AND MOREOVER NO ONE WILL FIND TIME TO SOLVE IT........................AGREE???


CCI Pro

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