indo ltd buys and sells product Q-3. It values stock on the basis of FIFO &SIMPLE AVERAGE .On 1 June 2019, stock in hand consisted of 4,500 units which were acquired at ksh. 50 per unit. The transactions for the month of June were as follows: Date Purchases Sales June 2 5,000 @ ksh.48 6,000 @ ksh. 60 5 5,500 @ ksh. 49 7 4,000 @ ksh. 50 11 7,000 @ ksh. 61 12 5,000 @ ksh. 50 13 6,000 @ ksh. 47 18 7,000 @ ksh. 62 19 8,000 @ ksh. 64 20 6,000 @ksh. 49.50 21 5,000 @ ksh. 65 22 7,000 @ ksh. 50 25 6,000 @ ksh. 49 26 2,000 @ ksh. 47 28 500 @ ksh. 60 29 14,000 @ ksh. 64 The company incurred operating cost of ksh. 450,000 during the month. Required: Prepare the stores ledger card using Simple Average and FIFO Determine the value of closing stock and cost of sales under the three methods. Prepare the trading account for the month based on the three different stock valuation methods.
Tindo ltd buys and sells product Q-3. It values stock on the basis of FIFO &SIMPLE AVERAGE .On 1 June 2019, stock in hand consisted of 4,500 units which were acquired at ksh. 50 per unit. The transactions for the month of June were as follows:
Date Purchases Sales
June 2 5,000 @ ksh.48
6,000 @ ksh. 60
5 5,500 @ ksh. 49
7 4,000 @ ksh. 50
11 7,000 @ ksh. 61
12 5,000 @ ksh. 50
13 6,000 @ ksh. 47
18 7,000 @ ksh. 62
19 8,000 @ ksh. 64
20 6,000 @ksh. 49.50
21 5,000 @ ksh. 65
22 7,000 @ ksh. 50
25 6,000 @ ksh. 49
26 2,000 @ ksh. 47
28 500 @ ksh. 60
29 14,000 @ ksh. 64
The company incurred operating cost of ksh. 450,000 during the month.
Required:
Prepare the stores ledger card using Simple Average and FIFO
Determine the value of closing stock and cost of sales under the three methods.
Prepare the trading account for the month based on the three different stock valuation methods.
Step by step
Solved in 6 steps with 10 images
