EXAMPLE 2

A. FIFO
Receipts Issues Balance
Dat Qty Amount Unit Qty Amount Qty Amount
e price
K K K K
13/1 200 7,200 36 200 7,200
8/2 400 15,200 38 600 22,400
10/2 200@36
10/2 300@38 18,600 100 3,800
11/3 600 24,000 40 700 27,800
12/4 400 14,000 35 1,100 41,800
20/4 100@38
500@40 23,800 500 18,000
15/6 500 14,000 28 1,000 32,000
25/6 100@40
300@35 14,500 600 17,500
74,400 56,900
30/6 Stock loss 100@35 3,500 500 14,000
74,400 60,400

B. Profit statements
FIFO LIFO Weighted
Average
K K K
Sales 67,200 67,200 67,200
Less: cost of sales 56,900 52,000 54,617
10,300 15,200 12,583
Less: stock loss 3,500 2,800 3,297
Other expenses 2,300 2,300 2,300
4,500 10,100 6,986

GP % [(10,200/67,200)x100%] 15.32% 22.62% 18.72%

ROCE [4,500/(40,000+4,500)x100%] 10.11% 20.16% 14.87%
A. LIFO
Receipts Issues Balance
Unit
Dat Qty Amount price Qty Amount Qty Amount
e
K K K K
13/1 200 7,200 36 200 7,200
8/2 400 15,200 38 600 22,400
10/2 400@38
100@36 18,800 100 3,600
11/3 600 24,000 40 700 27,600
12/4 400 14,000 35 1,100 41,600
20/4 400@35
200@40 22,000 500 19,600
15/6 500 14,000 28 1,000 33,600
25/6 400@28 11,200 600 22,400
74,400 52,000
30/6 Stock loss 100@28 2,800 500 19,600
74,400 54,800

B. Weighted Average
Weighted
unit price at
date of
Receipts Issues Balance receipt

Date Qty Amount Qty Amount Qty Amount

K K K K
13/1 200 7,200 200 7,200 36.00
8/2 400 15,200 600 22,400 37.33
10/2 500@37.33 18,665 100 3,735
11/3 600 24,000 700 27,735 39.62
12/4 400 14,000 1,100 41,735 37.94
20/4 600@37.94 22,764 500 18,971
15/6 500 14,000 1,000 32,971 32.97
25/6 400@32.97 13,188 600 19,783
74,400 54,617
30/6 Stock loss 100@32.97 3,297 500 16,486
74,400 54,914
EXAMPLE 3
A. Weighted average cost
Purchase Cost of Closing
Date Units price cost production stock

K K K K K
1/5 Purchase 100 41.00 4,100 4,100
10/5 Purchase 75 42.00 3,150 3,150
175 41.42 7,250
9
15/5 Issue 50 2,071 2,071
125 5,179
20/5 Issue 65 2,693 2,693
60 2,486
23/5 Purchase 40 42.00 1,680 1,680
100 41.66 4,166
30/5 Issue 50 2,083 2,083
Closing stock 50 2,083 2,143
8,930 6,847 2,143

B. Standard Costing
K K K
Purchase cost 8,930
Cost of production (165x40) 6,600
Closing stock (50x40) 2,000
Material price variance on purchase
(adverse) taken to profit x loss account:
100 x K1 100
75 x K2 150
40 x K2 80
330
8,930
C. Replacement cost
K K K K K
Purchase cost as in (a) 9,050
Cost of production:
50 x K43 2,150
65 x K44 2,860
50 x K46 2,300
7,310
Closing stock:
50 x K46 2,300 9,610
Stock revaluation reserve:
50 x K2 100
50 x K3 150
15 x K2 30 180
50 x K4 200 480
10 x K4 40
40 x K1 40 80 (560) 9,050