Purchases

Opening
8 units @ Rs 10
Balance 80 Total Inventory 24 units FIFO LIFO
2-Dec 6 units @ Rs. 12 72 Inv Issued 18 units 216 252
22-Dec 10 units @ Rs. 16 160 Closing stock 6 units 96 60
Sales 312
15-Dec 4 units @ Rs. 22 FIFO
31-Dec 14 units @ Rs. 25

Weighted avg Price 13

WAC
234 COGS
78 CS
 Inventory Valuation - Perpetual Method (FIFO)
Date Purchases Issues Balance
Qnt Rate Amount Qnt Rate Amount Qnt Rate
1-Dec 0 8 10
2-Dec 6 12 72 8 10
6 12
15-Dec 4 10 40 4 10
6 12
22-Dec 10 16 160 4 10
6 12
10 16
31-Dec 0 4 10 40
0 6 12 72
0 4 16 64 6 16
216 COGS
LIFO
1-Dec 0 8 10
2-Dec 6 12 72 8 10
6 12
15-Dec 4 12 48 8 10
2 12
22-Dec 10 16 160 8 10
2 12
10 16
31-Dec 10 16 160
2 12 24
2 10 20 6 10
252 COGS
WAC
1-Dec 0 8 10
2-Dec 6 12 72 14 10.857143
15-Dec 4 10.857143 43.428571 10 10.857143

22-Dec 10 16 160 20 13.428571

31-Dec 14 13.428571 188 6 13.428571

231.4285714 COGS
Balance
Amount
80
80
72
40
72
40
72
160

96 CS

80
152

104

264

60 CS

80
152
108.57143

268.57143
80.571429 CS
Example 4:
You are required to value the inventory (Cost of Sales and Ending Inventory) by FIFO, LIFO and Weighted average (Periodic Sys
Date                                                       Units                     @                                     Total CS
1 Jan      Balance                                 100                           10                                   Rs. 1,000
5 Jan      Purchases                              100                           11                                        1,100
10 Jan    Purchases                              150       350                      12 12
                                      1,800
During the period 300 unit were sold @ Rs. 15 per unit 3900 11.14

FIFO 3300 COGS 600 CS

LIFO 3400 COGS 500 CS

WAC 3343 COGS 557 CS

Weighted average (Periodic System) and Comparative Cost Sheet in amount:
50
 FIFO
Date Purchases Issues Balance
Qnt Rate Amount Qnt Rate Amount Qnt Rate
1-Jan 100 10
5-Jan 100 11 1100 100 10
100 11
10-Jan 150 12 1800 150 12
x date 300 10,11,12 3300 cogs
50 12
LIFO
1-Jan 100 10
5-Jan 100 11 1100 100 10
100 11
10-Jan 150 12 1800 150 12
x date 300 12,11,10 3400 cogs
50 10
weight average method
1-Jan 100 10
5-Jan 100 11 1100 200 10.5
10-Jan 150 12 1800 350 11.14
x date 300 11.14 3343

50 11.14
Balance
Amount
1000
1000
1100
1800

600 cs
1000
100
1100
1800

500 cs
1000
2100
3900

557 cs
Illustration 1:

In a factory, stores are issued and accounted for on FIFO method.

If the stock of a particular material on 1st Jan. 1992 is 1,000 units valued at Rs. 5 per unit and the particulars of purchases and
prepare a statement showing how the value of issues should be arrived at:
e particulars of purchases and issues during the month of January 1992 are as follows,
 FIFO
Date Purchases Issues Balance
Qnt Rate Amount Qnt Rate Amount Qnt Rate
1-Jan 1000 5
3-Jan 200 5.5 1100 1000 5
200 5.5
9-Jan 1000 5 5000 200 5.5
15-Jan 1400 6 8400 200 5.5
1400 6
17-Jan 1000 5.5,6 5900 600 6
21-Jan 800 6.5 5200 600 6
800 6.5
23-Jan 1000 6,6.5 6200 cogs
400 6.5

LIFO
1-Jan 1000 5
3-Jan 200 5.5 1100 1000 5
200 5.5
9-Jan 1000 5.5,5 5100 200 5
15-Jan 1400 6 8400 200 5
1400 6
17-Jan 1000 6 6000 200 5
400 6
21-Jan 800 6.5 5200 200 5
400 6
800 6.5
23-Jan 1000 6.5,6 6400 cogs
200 5
200 6

weight average method

1-Jan 1000 5
3-Jan 200 5.5 1100 1200 5.08
9-Jan 1000 5.08 5080 200 5.08
15-Jan 1400 6 8400 1600 5.89
17-Jan 1000 5.89 5890 600 5.89
21-Jan 800 6.5 5200 1400 6.24
23-Jan 1000 6.24 6240 cogs
400 6.24
Balance
Amount
5000
5000
1100
1100
1100
8400
3600
3600
5200

2600 cs

5000
5000
1100
1000
1000
8400
1000
2400
1000
2400
5200

1000
1200
2200 cs

5000
6100
1016
9416
3534
8734
2496 cs
 Trading and Profit and Loss Account
Dr Cr
Particulars Amount Particulars Amount
Opening Stock Sales xxx
Purchases xxx Less: S Return xx 7000
Less: P Return xx Closing Stock 500
Add: Carriage I/w xx 3400
Wages 1500
Other Direct Expenses 500
Gross Profit 2100
7500 7500
Gross Profit