home > Sample Assignment > Accounting Homework Assignment > Fifo Lifo

Fifo Lifo Sample Assignment

Q. In October 19...., D. Ltd. recorded the following data :
        1 October                       Opening Stock                       200 @ Rs.20  each           
        7October                        Purchases                             400 @ Rs. 22 each 
       18October                       Purchases                             400 @ Rs. 24 each 
       20October                       Purchases                             200 @ Rs. 26 each
       29October                       Purchases                             400 @ Rs. 30 each
Sales during the mouth were 600 units
What  was the value of closing stock on the following bases :
(a)    FIFO Method
(b)    LIFO Method
(c)    Weighted Average Method
(d)    Which method would give the least amount of profit (Ans. LIFO)
(e)    If the company adheres closely to the matching concept , which method would they prefer?

Solution:

                                                                D.Ltd.
                                      Closing Stock Under Periodic System
(a)    FIFO                        = (400X30) + (200X26) + (400X24)
                                         =12,000 +5,200 +9,600 = Rs. 26,800
(b)    LIFO                       =(200x20) + (400x22) + (400x24)
                                        =4,000 +8,800 + 9,600 = Rs. 22,400
(c)    Total Cost            =(2,00x20) + (400x22) + (400x24) + (200x26) + (400x30)
                                       =4,000 +8,800 + 9,600 +5,200 + 12,000
                                       = Rs. 39,600
Total units                    = 200 + 400 + 400 +200 +400 = 1,600 Units
WEIGHTED AVERAGE =   39,600    = Rs, 24.75
                                               1,600
Value of Closing Stock  = 1,000x24.75 = Rs. 24,750
(d) As closing stock valuation is least in case of LIFO, Cost of sales will be highest in case of LIFO, giving the least amount of profit.

Other Sample Assignments in Accounting Homework Assignment :

Calculate Cost of Land and Building	Calculate Depreciation
Calculate Depreciation By Equal	Calculate Depreciation Diminishing Balance
Calculate Depreciation Expense	Inventory Valuation
Calculate Cost Of Sale	Calculate Inventory And Profit
Fifo Lifo	Financial Statements profit and loss
Financal Statements

---

---