Stock Valuation

S. Y .COM STOCK VALUATION

Omtex – classes “THE HOME OF TEXT”

NOTES

1. Calculate by FIFO method of inventory valuation, the cost of goods sold and value of ending inventory from the following data: Date of transaction Units Price per unit January 1 Opening stock 1,500 20 February 2 Purchased 750 25 March 15 Purchased 600 22 March 15 Sold 1,800 April 10 Sold 750 May 15 Purchased 600 25 June 10 Sold 750 -

2. On 1st April, 2000, a trading company has 6,000 of a certain product , valued at Rs .75,000. Purchases and sales during the six months ending 30th sept .2000 were as under:Date of transaction Units and rate Sales to 18th June 2000 2,500 units at Rs .15 each Purchases on 19th June 2000 5,000 units at Rs .13 each Carriage inward Rs.500 Sales to 25th august 2000 4,000 units at Rs.16 each Purchases on 26th august 2000 6,000 units at Rs.14 each Carriage inward Rs.600 Sales to 30th septembter2000 6,500 units at Rs. 17 each Ascertain (i) the cost of goods sold for six months (ii) the cost of stock on hand as on 31st sept 2000 and (iii) gross profit under FIFO method and also prepare trading account. 3. Keep stock record on weighted average basis from the following transactions: Purchases: March 2000 Date Units Rate per unit 1 4 9 15 25 31 Sales : March 2000 Date 2 7 11 18 27 Find out of cost goods sold, cl.stock and profit

500 700 900 300 200 500

18 20 18 25 20 25

Units

Rate per unit

200 500 400 800 500

22 25 21 28 25

1 OMTEX - CLASSES

OMTEX - CLASSES

S. Y .COM STOCK VALUATION

Omtex – classes “THE HOME OF TEXT”

NOTES

4. Following are the purchases and sale of wheat in the months of March, 2003. Prepare a statement showing the valuation of stock on the basis of (i) FIFO (ii) Wt. avg. cost Date 2003 March 1 2 5 10 18 23 29 31

Purchases (kg,) 600 300 200 400 -

Rate (Rs.) 4 3.80 4.20 4.40 -

Sales (Kg.) 300 200 400 300

Out of purchases March 5, 50 kg.s were returned to the suppliers on March 8. Out of sales on March 23, a customer returned 20 kgs .on march 26. 5. The following is an extract of the record of receipts and issues of sulphur in a chemical factory during feb.2001: Feb 1 Opening balance 500 tonnes @ Rs.200. 3 Issue: 70 tonnes 4 Issue: 100 tonnes 8 Issue: 80 tonnes 13 Received from supplier 200 tonnes @ Rs.190 14 Returned from department 15 tonnes 16 Issue: 180 tonnes 20 Receivedfrom supplier 240 tonnes @ 190 24 Issue: 300 tonnes 25 Received from supplier 240 tonnes @ 190 26 Issue: 115 tonnes 27 Returned form department 35 tonnes 28 Received from suppliers 100 tonnes @ Rs.190 Issues are to be priced on the principle of FIFO. The stock verifier of the factory had found a shortage of 10 tonnes on the 22nd and left a note accordingly. Draw up a priced stores ledger card for the material, showing the above transactions. 6. Find the value of closing stock under FIFO and Wt. avg. Mtd from the following information January 2001 1 4 8 10 11 16 18 23 29

Opening stock Sales Purchases Sales Sales Purchases Sales Purchases Sales

Units

@ Rs.

700 300 900 500 100 800 400 1,100 600

5 6 6.50 7.00

The market value of closing stock on 31st January,2001 was Rs . 6.50 2 OMTEX - CLASSES

OMTEX - CLASSES

S. Y .COM STOCK VALUATION

Omtex – classes “THE HOME OF TEXT”

3 OMTEX - CLASSES

OMTEX - CLASSES

NOTES

S. Y .COM STOCK VALUATION

Omtex – classes “THE HOME OF TEXT”

NOTES

7. Enter the following in the stores ledger of Y material using FIFO method Jan 2000 1 Balance 250 units @ Rs. 10 per unit 3 Issued 50 units on M.R. No. 6 6 Received 800 units vide G. R. No.13 @ Rs.11 per unit 7 Issued 300 units on M.R.No. 63 8 Returned to stores 20 units on M.R.No.61 12 Received300 units Per G.R.No. 15 @ Rs. 12 per unit 15 Issued 320 units M.R.No. 83 18 Received 100 units, G.R.Note No.77 @12 per unit 20 Issued120 units M.R.No. 102 23 Returned to vendors 40 units from G.R.No.77 Recevied on 18th instant 26 Received 200 units on G.R.No. 96 @ Rs. 10 per unit 28 Freight paid on purchases (vide G.R.No.96) Rs.50 30 Issued 250 units on M.R.No.113 Note: M.R.no. = material requisition (demand) G.R.No. = Goods received note 8.The following are the receipts and issues of coal in a factory during march 2000. 1 Opening stock 200 tons at Rs. 460 per ton 2 Issued 140 tons 3 purchased 350 tons at Rs.450 per ton 4 Condemned(BLAME ) due to deterioration(BECOME WORSE) in quantity 8 Issued 80 tons 14 Issued 210 tons 17 Purchased 180 tons at Rs. 480 per ton 20 Issued 120 tons 25 purchased 180 tons at Rs.470 per ton 28 Issued 280 tons 31 Excess found in stock 43 tons due to wrong weighing (FINDING) during the month The maximum level fixed is 400 tons ,the minimum 75 tons and the reorder level is 100 ton Show the stores ledger account under FIFO system 96 97 98 99 00 Sales 60,000 75,000 80,000 1,00,000 1,20,000 Purchases 35,000 45,000 65,000 80,000 95,000 St.valued Under: LIFO 8,500 6,500 9,300 10,300 11,300 FIFO 5,600 7,400 9,750 8,500 10,300 AVG. 6,400 8,900 11,300 7,500 10,560 9. MR. Prabhu has given the particulars about his purchases and sales for the five year Required : prepare trading account for the five year under the FIFO method of valuation of stock.

4 OMTEX - CLASSES

OMTEX - CLASSES