Queation 1

1 Ascertain the value of Closing Stock as on 31.03.2020 using (a) FIFO (b) LIFO and (C) WAM

Purchases Sales Closing Stock

Date
Units Rate Amount Units Rate Amount Units Rate
31.12.2019 - - - - - - 1,500 20
16.01.2020 500 20 10,000 - - - - -
21.01.2020 - - - 1,000 22 11,000 - -
09.02.2020 5,750 21 120,750 - - - - -
26.02.2020 - - - 1,250 23 28,750 - -
03.03.2020 - - - 1,400 25 35,000 - -
12.03.2020 3,500 24 84,000 2,800 27 75,600 - -
22.03.2020 - - - 600 27 16,200 - -

FIFO

Purchases Issue/Sales Closing Stock

Date
Units Rate Amount Units Rate Amount Units Rate
12/31/2019 - - - - - - 1500 20
1/16/2020 500 20 10000 - - - 2000 20
1/21/2020 - - - 1000 20 20,000 1000 20
- - - 1000 20
2/9/2020 5750 21 120750
- - - 5750 21
- - - 1000 20 20,000
2/26/2020 5500 21
- - - 250 21 5250
3/3/2020 - - - 1400 21 29400 4100 21
1300 21
3/12/2020 3500 24 84000 2800 21 58800
3500 24
- - - 700 21
3/22/2020 600 21 12600
- - - 3500 24

Closing Stock as on 31/3/2020 is (700+3500) Units= 4200 Units of total value (14700+84000)= 98700
Note: For Calculation of cost of finished goods sold, selling price given for respective sales is ignored,
as cost of goods sold is always calculated at cost of its purchase and incidental cost incurred to its purchase

LIFO
 Purchases Issue/Sales Closing Stock
Date
Units Rate Amount Units Rate Amount Units Rate
12/31/2019 - - - - - - 1500 20
1/16/2020 500 20 10000 - - - 2000 20
1/21/2020 - - - 1000 20 20000 1000 20
1000 20
2/9/2020 5750 21 36750 - - -
5750 21
1000 20
2/26/2020 - - - 1250 21 26250
4500 21
1000 20
3/3/2020 - - - 1400 21 29400
3100 21
1000 20
3/12/2020 3500 24 84000 2800 24 67200 3100 21
700 24
1000 20
3/22/2020 600 24 14400 3100 21
100 24

Closing Stock as on 31/3/2020 is (1000+3100+10) Units= 4200 Units of total value (20000+65100+2400)= 87500
Note: For Calculation of cost of finished goods sold, selling price given for respective sales is ignored,
as cost of goods sold is always calculated at cost of its purchase and incidental cost incurred to its purchase

WAM
Purchases Issue/Sales Closing Stock
Date
Units Rate Amount Units Rate Amount Units Rate
12/31/2019 - - - - - - 1500 20
1/16/2020 500 20 10000 - - - 2000 20
1/21/2020 - - - 1000 20 20000 1000 20
2/9/2020 5750 21 120750 - - - 6750 20.85
2/26/2020 1250 20.85 26063 5500 20.85
3/3/2020 1400 20.85 29190 4100 20.85
3/12/2020 3500 24 84000 2800 22.30 62442 4800 22.30
3/22/2020 600 22.30 13380 4200 22.30
Closing Stock as on 31/3/2020 is 4200 Units of total value = 93660
Note: For Calculation of cost of finished goods sold, selling price given for respective sales is ignored,
as cost of goods sold is always calculated at cost of its purchase and incidental cost incurred to its purchase

140750 20.851852 169485

6750 7600
losing Stock
Amount
30,000
-
-
-
-
-
-
-

Closing Stock
Amount
30,000
40,000
20,000
20,000
120,750

115500

86100
27300
84000
14700
84000
Closing Stock
Amount
30000
40000
20000
20000
36750
20000
94500
20000
65100
20000
65100
16800
20000
65100
2400

0+2400)= 87500

Closing Stock
Amount
30000
40000
20000
140750
114675
85485
107040
93660
 Question 2

Using (a) FIFO (b)LIFO and (C) WAM determine the value of Closing Stock
as on 31.12.2017 when stock on hand was 2200 units@ Rs. 10 per unit

Purchases Sales
Date
Units Rate Amount Units Rate Amount
02.01.2018 - - - 1700 12 20400
14.01.2018 1500 14 21000 - - -
29.01.2018 - - - 1800 15 27000
16.02.2018 1950 15 29250 - - -
23.02.2018 - - - 950 16 15200
14.03.2018 4500 17 76500 3200 18 57600
23.03.2018 - - - 500 18 9000

FIFO
Purchases Issue/Sales Closing Stock
Date
Units Rate Amount Units Rate Amount Units Rate
12/31/2017 - - - - - - 2200 10
1/2/2018 - - - 1700 10 17000 500 10
500 10
1/14/2018 1500 14 21000 - - -
1500 14
500 10 5000
1/29/2018 - - - 200 14
1300 14 18200
200 14
2/16/2018 1950 15 29250 - - -
1950 15
200 14 2800
2/23/2018 1200 15
750 15 11250
1200 15 18000
3/14/2018 4500 17 76500 2500 17
2000 17 34000
3/23/2018 500 17 8500 2000 17

Closing Stock as on 31/3/2018 is 2000 Units of total value = 34000

Note: For Calculation of cost of finished goods sold, selling price given for respective sales is ignored,
as cost of goods sold is always calculated at cost of its purchase and incidental cost incurred to its purchase

LIFO
 Purchases Issue/Sales Closing Stock
Date
Units Rate Amount Units Rate Amount Units Rate
12/31/2017 2200 10
1/2/2018 1700 10 17000 500 10
500 10
1/14/2018 1500 14 21000
1500 14
1500 14 21000
1/29/2018
300 10 3000 200 10
200 10
2/16/2018 1950 15 29250
1950 15
200 10
2/23/2018 950 15 14250
1000 15
200 10
3/14/2018 4500 17 76500 3200 17 54400 1000 15
1300 17
200 10
3/23/2018 500 17 8500 1000 15
800 17

Closing Stock as on 31/3/2018 is (200+1000+800)=2000 Units of total value = 30600

Note: For Calculation of cost of finished goods sold, selling price given for respective sales is ignored,
as cost of goods sold is always calculated at cost of its purchase and incidental cost incurred to its purchase

WAM
Purchases Issue/Sales Closing Stock
Date
Units Rate Amount Units Rate Amount Units Rate
12/31/2017 2200 10
1/2/2018 1700 10 17000 500 10
1/14/2018 1500 14 21000 2000 13
1/29/2018 1800 13 23400 200 13
2/16/2018 1950 15 29250 2150 14.81
2/23/2018 950 14.81 14070 1200 14.82
3/14/2018 4500 17 76500 3200 16.54 52928 2500 16.54
3/23/2018 500 16.54 8270 2000 16.54

Closing Stock as on 31/3/2018 is 2000 Units of total value = 33083

Note: For Calculation of cost of finished goods sold, selling price given for respective sales is ignored,
as cost of goods sold is always calculated at cost of its purchase and incidental cost incurred to its purchase
Closing Stock
Amount
22000
5000
5000
21000

2800

2800
29250

18000

42500

34000
Closing Stock
Amount
22000
5000
5000
21000

2000
2000
29250
2000
15000
2000
15000
22100
2000
15000
13600

4500 17 200
4500 17 76500 200 15 800

Closing Stock
Amount
22000
5000
26000
2600
31850
17781
41353
33083
10 2000
15