Questions A B C D Solution

Issue of material priced at latest purchase price Simple Weighted

LIFO FIFO Average Average LIFO
under _____ method.
Under rising prices pricing of material issued at Weighted Simple
FIFO LIFO Average Average LIFO
latest price under _____ method.
Fluctuation in prices are averaged out under Weighted Simple None of the Weighted
_____ _____ method. Average Average FIFO above Average
Inventory valuation is done at latest price under None of the
FIFO LIFO Average above FIFO
_____ method.
Best stock Simple None of the
_____ method is recognised under AS 2. FIFO/WA method Average above FIFO/WA
_____ method is followed when lots of None of the
FIFO LIFO WA above WA
materials are not identifiable.
_____ _____ methods are followed when lots of Simple Weighted None of the
Average FIFO/LIFO above FIFO/LIFO
materials are identifiable. Average
Inventory is valued at more recent prices under Best stock Weighted
method FIFO LIFO Average FIFO
_____ method.
Standard Trade Cost of None of the
_____ _____ decrease cost of materials. price material above Trade Discount
Discount
Does not
Taxes and duties _____ cost of material. affect cost of Increase None of the Increase
material Decrease above
None of the
_____ method is logical. LIFO FIFO Average above FIFO
Under _____ method cost of goods sold Simple Weighted
Average Average LIFO FIFO FIFO
represents cost of earlier purchases.
Under _____ method cost of goods sold None of the
LIFO FIFO Average above LIFO
represents cost of recent purchases.
Under rising prices higher income is reported Simple Weighted
LIFO Average Average FIFO FIFO
under _____ method.
Under rising prices lower income is reported Weighted None of the
LIFO FIFO Average above LIFO
under _____ method.
_____ method is advantageously used in process Simple
W.A. Average LIFO FIFO W.A.
industries.
FIFO Method of pricing of materials results in
higher profits. True False True
Valuation of closing stock is the same under
FIFO and LIFO Method. True False False
Bin Card is the same as stores ledger. True False False
LIFO and Market Price Method are not same. True False True
If a company wants to maximise net income, it
would select FIFO Method. True False True
LIFO Method of pricing issues is useful during
the period of inflation. True False True
Weighted Average Method of pricing issues
involves adding different prices and dividing by
the number of such prices. True False True
Under FIFO Method, materials purchased first
are deemed to be issued last. True False False
Under LIFO Method, materials purchased last
are deemed to be issued first. True False False
Issue of materials during a period of time is Simple Weighted
FIFO LIFO Average Average LIFO
priced at the latest purchase cost under
Stores Department maintains a record in which a Stores Stock Bill of
separate folio is maintained for each item Ledger Bin Card Register Materials Stores Ledger
In times of rising prices, the pricing of issues Weighted Simple
will be at a more recent current market prices in FIFO Average LIFO Average LIFO
The inventory is valued at the most recent
market prices and it is near to the valuation Weighted Base Stock FIFO
based on replacement cost in FIFO LIFO Average Method
Highest In Weighted
According to the method of pricing, issues are First Out FIFO Average LIFO
close to current economic values LIFO Price Price
Weighted
In the method of pricing, cost lag behind the Replacement Average FIFO
current economic values LIFO Price FIFO Price
When prices fluctuate widely, the method that Simple Weighted Weighted
will smooth out the effect of fluctuations is Average Average FIFO LIFO Average
In the method, the charge to production is not at Weighted Standard Replacement
actual cost Average Price Price All of these All of these
Issue of material during the period is priced at None of the
the latest purchase cost under : FIFO LIFO Average above LIFO
Issue of material under _____ method is from None of the
oldest lots. FIFO LIFO Average above FIFO
During the period of rising prices, pricing of the None of the
issue will be at more recent price under : LIFO FIFO Average above LIFO
The inventory is valued at more recent price None of the
under : LIFO FIFO Average above FIFO
Increases Decreases Does not
cost of cost of affect cost of None of the Decreases cost
Trade discount : material material material above of material
Recognised
FIFO method is : Logical Illogical by AS2 both a & c both a & c
Under perpetual Inventory system stock is At the end of None of the
ascertained : Periodically Continuously the year above Continuously