Learning Objectives:

After going through this assignment, the students should be able to prepare:
• Store ledger card under inventory valuation method of first in first out (FIFO)
• cost of goods sold statement

Assignment Question

On January 1st, ABC Company had 215 gallons of material in store at Rs. 45.00 per
gallon.

Following information has been extracted from books of the company for inventory
records during January.
January 5: purchased 900 gallons @ Rs. 59 per gallon.
January 9: issued 650 gallons to job #20
January 11: 150 gallons deteriorated in quality and transferred to obsolete stock.
January 27: Returned to supplier 80 gallons purchased on January 5.

Additional Information:
During the same period 1,000 direct labor hours incurred in factory. Direct labour was
Rs. 19,000 and factory overhead applied rate was Rs. 60 per direct labour hour. Actual
factory overhead for the period was Rs. 17,500.
Month-end inventories of finished goods and work in process were Rs. 13, 750 and
Rs.12, 450 respectively. There was no beginning inventory.
Required:
Prepare Material Ledger Card under FIFO costing method and Cost of Goods Sold
Statement for the month of January.
NOTE: Complete working and formula carries marks.
Important Instructions:
24 hours extra / grace period after the due date is usually available to overcome
uploading difficulties. This extra time should only be used to meet the emergencies and
above mentioned due dates should always be treated as final to avoid any
inconvenience.

DEADLINE:
• Make sure to upload the solution file before the due date on VULMS.
• Any submission made via email after the due date will not be accepted.

FORMATTING GUIDELINES:
• Use the font style “Times New Roman” or “Arial” and font size “12”.
• It is advised to compose your document in MS-Word format.
• You may also compose your assignment in Open Office format.
• Use black and blue font colors only.

RULES FOR MARKING

Please note that your assignment will not be graded or graded as Zero (0), if:
• It is submitted after the due date.
• Provide complete working and formulas where necessary.
• The file you uploaded does not open or is corrupt.
• It is in any format other than MS-Word or Open Office; e.g. Excel, PowerPoint,
PDF etc.
• It is cheated or copied from other students, internet, books, journals etc.