Quality Wash (QW) ltd is a manufacturer of washing machines for the Kenyan market. The following information has been extracted from the store records for an important raw material component SR-42A Required: Prepare the stock ledger account for SR-42A using the Weighted Average price method Month of April 2021 Explain whether the Last In First Out (LIFO) method will have a lower or higher valuation of the closing stock compared to the closing stock value derived when using the Weighted Average price method for the Month of April 2021
Quality Wash (QW) ltd is a manufacturer of washing machines for the Kenyan market. The following information has been extracted from the store records for an important raw material component SR-42A Required: Prepare the stock ledger account for SR-42A using the Weighted Average price method Month of April 2021 Explain whether the Last In First Out (LIFO) method will have a lower or higher valuation of the closing stock compared to the closing stock value derived when using the Weighted Average price method for the Month of April 2021
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Quality Wash (QW) ltd is a manufacturer of washing machines for the Kenyan market. The following information has been extracted from the store records for an important raw material component SR-42A
Required:
- Prepare the stock ledger account for SR-42A using the Weighted Average price method Month of April 2021
- Explain whether the Last In First Out (LIFO) method will have a lower or higher valuation of the closing stock compared to the closing stock value derived when using the Weighted Average price method for the Month of April 2021
Transcribed Image Text:April 1
Opening inventory of SR-42A was 100,000 units having a value of Kshs. 80
per
unit
April 5
150,000 units of SR-42A were purchased at Kshs. 85 per unit
April 6
150,000 units of SR-42A were issued from stores
April 11
180,000 units of SR-42A were purchased at Kshs. 88.15 per unit
April 13
220,600 units of SR-42A were issued from stores
April 18
95,500 units of SR-42A were purchased at Kshs. 92.50 per unit
April 22
112,500 units of SR-42A were issued from stores
April 28
105,800 units of SR-42A were purchased at Kshs. 98.50 per unit
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