;x.qc1ses.

1
~' ~~Inventory c:~:T~:~, ~~n~ ;::,~:::~: p,~tcd,! 'M' u,,d
,-; /\.-~!:.11~ Industry during the month of June:
!~ I RccciYCd 500 units @ Rs.3.40
J:t., l O Received 150 units @ Rs.4.00
J..:: IS Issued 250units
!J.::. 25 Recci \·00. 300 unils@ Rs.4.50
Jr.n. }f) Issued 400 units
ia{und: Prepare Perpetual Inventory Cards :md cJ.kulatc cost of m:ncrials used anJ in
in,·cntri :is al June 30 usi ng following. mc1ho<ls:
la FO ~ o
J_{('° Avcrag~ Cos1ing
Checkjigtm:~ : Cosrlijmat~rials used (a) Rs. 1,300 (b) Rs. 2,630 (c) Rs. 2,46j J
Ending inn:m or)' (a) Rs. 1.350 (b) Rs.J,0:0 (C') R..~. J,JS5
(llf1u/ratio11 8·/ is rdatt'd 10 nluJ\'C- ai.'rcis~)

t.tkual Inventory Cards. During the month or July Al•Qu,Jo,.---,,,

~wcr. made follow ing. purch;iscs and issues ofm::itcrinl K:
 .MJ • w, V Co,t•" I & Atcoun1,n1 for Product Co,1 [l11m~nt,

Units l'rk
~ ~~to'rp""u,_1,_I"_ __ _ _ __,3~00~- . R _5
Reccipu 150
--''"""'--ces•- ----···-·..····-···---2· 5·o
~o~, _300___ __ -~.~ 5

bsucs· 350
. ~~;~;.'.- - - - -..-..-.. --.-...-..-.. _-__-__-__-__-__-_22ssco····
-!!'!!~:~
-"'=-----
Req uIttd: Compute cost of materials consumed , and co~t of inventory at the en
0 ~~tl1, usmg peJl)ctua! l ~tory system with caci]. of the fo llov. mg·
...JVriFO Costing, ,J1if LIFO Costing, (pf Average Cos ting
Clieckfiguru. Cos1of materials used (a) Rs. J,620 (b) Rs 1,905 (CJ R.1 I 7JJ 5
Co:11 of endin11 lnw ntory (a) Rs. J, 350 (b) Ju . 1,065 (c) R1 I .:'38 5
(Jflm1rat/011 8-1 Is rt!lated fO aho\le llX ercis,

a,.3. Store, Ledger Carda. As-S11lam Mills uses a material ca ll ed S in its produc110
. . . Process. Receipts and issues of material S during the month of May arc as under
Dale Receipts Issues
~ - - - - - -__ 1.000 units at Rs. 14,000 - ----- --=~.:....
~--------~-500 uoits-~ Rs._ 8.500 :=:::::. . ~00_umi-,__
May 24 _______ 600 units at Rs. 11.800 .
~llQ__ __________________ ... -·-······- - ......... 9/J~l!h..
Required: Value of issues on May J2 and May 2;and va lue of stock l1n i\ 1.1\ ·q
~ sues arc priced on-

FIFO bas is -O>n:;;:;bas,s vi~ov in g avmg,· b"ml

Checkfigu,es, Value oJ;ssue "" May J2 (a) Rs ~ b J R.,. I I.JOO (c} /1, /11.511
0 1

J.
Va/4,e J ss11e on i\,fc~1· 30 (a) Rs. l-1,66 7 (b) Rs. / 6.000 ({} R.1 15. JI~
Va/11eofstock o11 ,~,,.fay JJ (a) Rs . ~ (b) R.f. J5,30U(cJ Us !U fl

OJl11s1ration 8-/ is related to abon: f.!\ t'H !1~

• Materials Ledger Cards Duri S
had foll owing acti vuy in M · . 1 ng cptcmbcr Al- Mohaiminn Comp:1n) I 11m! c
Sq,.
1
Balance 500 a~~:::: : 0~~
3
f
Sep. 5 In voice No.840: 300 unit~; co.st 1,920.
 • I (L ,: I I'. ,.,_re,., •~, 38)
\,, ..,
r\. \' ' '\' r,JII :1111 •IHI

:/_-.;·,,::!~.';, ,., r,~\J ~li~\ll;n\1::·1I'' :.1,20

l

t, :~
): ,-<.jl:1•\lh' II ' \ ' l (l{J Ullll\
1,1\ ,-,,.· 'n Q,j, ~ml Ul\1!,, L<),I I ,J4(J
ii.: .; 111,11 1111,{,~fl l IOl)l 'nn,

;.~ •. :r,1 : 1! 1 l'rq•,11,· ll ~tr,unt: nrntcnuh kd~c-r ct1rd ~howmg da:c, invoice
numb-..:r, rt-lj1mi11,m number, u111 t cos-t :rnd amount fo r the
r-:,.cirG ;rnd h~uct usinl:,t: (BJ FI FO cos-ling, (b J LIFO costin g
.ind IC) ;\lo.ing, 11\:.:rngc cost ing
(:) i'<Cpl", ..ch,dok sho" mg 1hc cost 1111,chcd IO each .cqo;,;,;on
for ..:ach method of pricing so the effect of the vari ous methods
11n C:O~B may be compilrcd. /
Chcckjigi,rt·s. Tow/ cost ofiuur fa.LJ}F(f RJ.J,57$.J.bf1.IFO Rs. 5,810
\..ferl,!01•/ng U\t•rugr RJ.5,660
(/1/ustra//on 8-/ Is related to ahove exercise)

~ -s{ore, Ledger Cards. Al-;\fo min M~nufactums prO\'idcs following information:

lnvcmorv Au~ust I 1,200 units (@, Rs .•~(! __ _
Purch.1sc Au1tt1st 4 300 units ca; Rs. 8.5Q _ _
P~rch.1se August 10 300 units (a:, Rs . 9.00
· Purchase August 25 400 units Rs. 9.65
(ssuc August 17 600 units
--"'l''-''°"-'-----~A~B_USI 29
700 units

Rcqairtd: The cos t or ma.tcrials used during August and the cosl assigned to the
cndng inventory by CJ.ch uf the following perpetual inventory costing
mcl~:
\.W"",J-IFO
Jcf Moving average. $ ~ c c c n t urchasc rice .
4 !)fG.
Check figures: Cost ofmaterials use ( _fts. 10,450 (b) &vt1io
.(£}Rs. /0,970/d!Rs. 12.155
Co51 ofending inventory~,;. 8,260 (b~i,20~ \!ef"Rs. 7,740 (d) Rs. 6,555
(lll11smi1w 11 s.J 1s related to above cxcrci.tc)

l.~rials Ledger Cards . Al-Am 1,du,1ry pw,idcs following mlonn,llon as to

tJJ~tr.!t,ry Changes of 3 certain matcn::i.1 dunng the month of October 20xx

t
 384 P,Ht•IV Co st!ns & Accoun t,ns for Prod uct Cost Element s

Oct. I Balance b/d 40() kg a f.' • ,

OcL 2 Purchased 400 k~ Rs ; !·
Oct. 7 Issued JOO kg •
Oct. I I Purchased JQO k~ -~ Rl> 1
\._-' (t.<-L\ .ra.6 c1 . J 7 Returned to supplier 150 kg purchased on March _3. 20xx ,
Oct .23
-;O
'c'c':'t.cc
Oct.3 1
25; --
Issued
-i:R~ct~um
Issued
~ cd,-to storeroom e_!}J.~
-~--- 400 k~
I 00 k8
l_S0E

Required: Pr c ~\1aterial~ger Car~ ndcr:

~ pm Jb,{~ ~ .JdEQ g8>'"'
Check fig ures: Ending in l'entory (a) & ;.:lJ!....0•01f'!U] (',/_ /!1 ·M~i
(Illustrations 8-4, 8-5 and 8-6 are relat<!d to abv-.,. <'Wrn,t'•
Materials Ledger Cards . follow ing 1ransactions affect ing materi al '.\ o 11 (.\
ed during March 20xx: •
March ! Balance on hand 500 ga llons @ Rs. 20 per ga llon.
March 2 Received l ,200 gallons @ Rs. 2 1.00 per gallon .
March 3 Issued 600 gallons.
March 5 Received l ,000 gallons @ Rs. 19.00 per gallon.
March 7 Returned to vendor 200 ga llons received on March 5.
March 10 Issued 900 gall ons.
March 14 Received 600 gal lons @ Rs. 20.00 per gal lon .
March 18 Issued 800 gallons.
March 22 Issued 400 gallons .
March 26 Received l ,500 ga llons @ Rs 18.00 per gallon .
March 28 J 00 gall ons were returned from fac lory 10 storeroom
March JO Issued 700 gal lons
Required: '.~arc materials ledger ca usi ng · . ~ \ . j 1.10 0
._,,,,E-a) FIFO method. ffO rncthoJ
Rs ;;!./1~
1
Check fig ures: Ending ifll 'l'llfm ' " ) ~S . 23,400
(11/ustrations 8-4. 8-5 and 8-6 are related to ahtw<' ,,i,r<i'<