Question

CAT 1 AND 2

ATTEMPT ALL THE QUESTIONS

Cost Accounting Questions.

(3 ) Stores plc record the following stock movements of a new stock item called Probon:

Stores plc records the following stock movements of a new stock item called Probon:

Receipts (units)                                                       Issues (units)

02 April 2400 at £8 each

06 April 3600 at £9 each

12 April 4000 at £10 each                                         17 April 7000

24 April 4000 at £10.50 each                                    27 April 5000

There was no opening stock.

Prepare new stock cards for stock item Probon – showing the value of each of the two issues and the value of closing stock using FIFO stock pricing/valuation methods:

Answer 1

Solution: Stock card of Probon: Date Receipts Quantity Rate 2400 Issues Amount Quantity Rate 19200 Balance Amount Quantity Rate April 02 2400 April 06 3600 9 32400 2400 3600 2400 3600 4000 Amount 19200 19200 32400 19200 32400 40000 April 12 4000 10 40000 10 8 2400 3600 1000 9 19200 32400 10000 April 17 10 10 3000 3000 4000 10 10.5 30000 30000 42000 April 24 4000 10.5 42000 3000 10 10.5 30000 21000 April 27 2000 2000 10.5 21000 The value of issue on 17 April = £19,200 + £32,400 + £10,000 = £61,600 The value of issue on 27 April = £30,000 + £21,000 = £51,000 The value of closing stock = £21,000