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S. Y .

COM Omtex – classes


STOCK VALUATION “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
1 500 18
4 700 20
9 900 18
15 300 25
25 200 20
31 500 25
Sales : March 2000
Date Units Rate per unit
2 200 22
7 500 25
11 400 21
18 800 28
27 500 25
Find out of cost goods sold, cl.stock and profit

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S. Y .COM Omtex – classes
STOCK VALUATION “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 Purchases Rate Sales


2003 (kg,) (Rs.) (Kg.)
March 1 600 4 -
2 - - 300
5 300 3.80 -
10 - - 200
18 200 4.20 -
23 - - 400
29 400 4.40 -
31 - - 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 Units @ Rs.

1 Opening stock 700 5


4 Sales 300
8 Purchases 900 6
10 Sales 500
11 Sales 100
16 Purchases 800 6.50
18 Sales 400
23 Purchases 1,100 7.00
29 Sales 600

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

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S. Y .COM Omtex – classes
STOCK VALUATION “THE HOME OF TEXT” NOTES

OMTEX - CLASSES OMTEX - CLASSES


S. Y .COM Omtex – classes
STOCK VALUATION “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.

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