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(a) Determination of closinstock of sardiness

Opening stock on 1st June 2017 350units@19.60= 6860

Date Particulars units rate Amount Date PArticulars UNitsrate Amount

1st June 2017opening inventory350 19.6 6860 June sales 730 28.5 20805
16 june2017 purchases 200 19.5 3900 June Normal Loss of units14
19 June 2017 Purchases 470 19.7 9259 30 june2017closing inventory 326 19.706422.20
June sales returns 50 28.56

total 1070 21,444.00 total 1070 27,227.20

value of closing inventory of sardiness on 30 june 2017 326units @19.70=6422.20

value
Date PArticulars Unitsrate Value in AmountDAte PArticulars UnitsRAte in
amount
01 june2017 opening inventory625 38.4024000 june 2017 sales 950 40 38000
3 june 2017 purchases 150 38.455767.50 june 2017 Normal loss 10
15 june2017 purchases 200 38.457690 june 2017 goods in transit 240 39 9360
30 june 2017closing inventory15 38.45576.75

30 june 2017total 1215 30 june 2017total 1215

value of closing inventory of sugar is 15 units @38.45=576.75

(b)

cost of inventory of sardines on 30th June 2017 326 units @19.70=dollars 6422.20

Net realisable value of inventory of sardiness 326units @ 29=dollars 9454.00

Applying concept of cost or net realisable value which ever is lower: cost of inventory of sardiness on 30 june 2017 is dollars
6422.20

cost of inventory of sugar on 30 june 2017 =15units @38.45=dollars 576.75

Net realisable value of inventory on 30june 2017=15 units @38.50=dollars577.50

Applying cost or net realisable value method which ever is lower:

Cost of inventory of sugar is dollars 576.75

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