* At the beginning of May, the raw material inventory level was 150 units, valued at RM450. InMay, additional supplies were received in stores as follows:DateQuantity (units)Costs (RM)10 May25087518 Мay2501,00025 May2501,125Included in the costs is the carriage inwards of RM100, which is included as part of the stockcosts.The issues from stores during May were as follows:ETITDateQuantity (units)DateQuantity (units)8 May10017 May22510 May20021 May2512 May7530 Мay20On 20 March, 50 units were returned from the production department. An inventory check on31 May revealed that 40 units were stolen.Required:a. Prepare a stores account for May using the FIFO method.b. Prepare a stores account for May using the LIFO method.c. Explain the reasons for the stock discrepancy at the end of the May.

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At the beginning of May, the raw material inventory level was 150 units, valued at RM450. In May, additional supplies were received in stores as follows: Date Quantity (units) Costs (RM) 10 May 250 875 18 May 250 1,000 25 May 250 1,125 Included in the costs is the carriage inwards of RM100, which is included as part of the stock costs. The issues from stores during May were as follows: Date Quantity (units) Date Quantity (units) 8 May 100 17 May 225 10 May 21 May 30 May 200 25 12 May 75 20 On 20 March, 50 units were returned from the production department. An inventory check on 31 May revealed that 40 units were stolen. Required: a. Prepare a stores account for May using the FIFO method. b. Prepare a stores account for May using the LIFO method. c. Explain the reasons for the stock discrepancy at the end of the May.

At the beginning of May, the raw material inventory level was 150 units, valued at RM450. In May, additional supplies were received in stores as follows: Date Quantity (units) Costs (RM) 10 May 250 875 18 May 250 1,000 25 May 250 1,125 Included in the costs is the carriage inwards of RM100, which is included as part of the stock costs. The issues from stores during May were as follows: Date Quantity (units) Date Quantity (units) 8 May 100 17 May 225 10 May 21 May 30 May 200 25 12 May 75 20 On 20 March, 50 units were returned from the production department. An inventory check on 31 May revealed that 40 units were stolen. Required: a. Prepare a stores account for May using the FIFO method. b. Prepare a stores account for May using the LIFO method. c. Explain the reasons for the stock discrepancy at the end of the May.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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