EXERCISE COSTING OF MATERIALS 8-1. Perpetual Inventory Cards. The following information pertain to Mehmood Pipe Factory Ltd.

for the month of june: june june june june june 2 8 15 22 29 received received issued received issued 200units @ Rs.6.20 60units @ Rs.7.80 100units 130units @ Rs.8.20 150units

Required: Prepare perpetual Inventory Cards and calculate cost of materials used and in inventory as at june 30 using following methods: (a) FIFO (b) LIFO (c) Average Costing Check Figures: Costof materials used (a)Rs.1,630 (b)Rs.1,906 (c)Rs. 1,751.90 ending inventory: (a)Rs.1,144 (b)Rs.864 (c)Rs.1,022.10 ................................ .....................................

8-2 . Perpetual Inventory Cards. A company made following purchases and issue of a material during January. Inventory Jan. 1st Per Units No of units Rs. 1.20 500 Receipts: Jan. 6th 1.25 200 Jan. 10th 1.30 400 Jan. 25th 1.40 500 Issues: Jan. 15th 560 Jan. 27th 400 Required Complete cost of materials consumed, and cost assigned to the inventory at the end of month, using perpetual inventory system with each of the following: (a)FIFO Costing (b)LIFO Costing (c)Average Costing Check figures: cost of materials used (a)Rs. 118 (b)Rs.1280 (c)Rs.1225.20 Cost Of Ending Inventory (a)Rs. 882 (b)Rs. 790 (c)Rs. 844.80 . .......................................... ...................................................

8-3. Stores Ledger Cards. Receipts and issues of a stores item

"FAST" during the month of December are as under: DATE RECEIPTS Date 1 5 12 14 31 Receipts 2,000 units at Rs. 20,000 1,000 units at Rs. 8,000 ----1,000 units at Rs. 9,000 ----issues ----------1,500 units -----1,000 units

Required: value of issues on Dec. 12 and Dec. 31 and value of stock on Dec. 31 when issyes are prices on: (a)FIFO basis (b)LIFO basis (c) Moving average basis Check figures: Value of issue on Dec. 12 (a)Rs. 15000 (b)Rs. 13000 (c)Rs. 14000 Value of issue on Dec. 31 (a)Rs. 9000 (b)Rs. 9000 (c)Rs. 9200 Value of stock on Dec. 31 (a)Rs. 13000 (b)Rs. 15000 (c)Rs. 13800 ............................................... ......................................................... ...

8-4. Stores Ledger Cards. The following information is to be used in costing inventory on October 31: Inventory October 1 800 units @Rs.1.60 Purchase October 5 200 units @Rs.1.70 Purchase October 9 200 units @Rs.1.80 Purchase October 24 300 units @Rs.1.90 Issue October 16 400 units Issue October 27 500 units Required: the cost of materials used and the cost assigned to the October 31 inventory by each of the following perpetual inventory costting methods: (a)FIFO (b)LIFO (c)Moving average (round unit cost to the nearest paisa) (d)Most recent purchase price Check figures: Cost of materials used: (a)Rs. 1450 (b)Rs. 1590 (c)Rs. 1519.10 (d)Rs.1670 Cost of ending inventory (a)Rs. 1100 (b)Rs. 960 (c)Rs. 1030.90 (d)Rs. 880 .............................................. ................................................... ...... .....................................

8-5. Materials Ledger Cards: Following are inventory changes of a certain material during the month of march 20xx . March 1 Balance 150 kg .@Rs. 6.00 March 3 Purchased 150 kg.@Rs. 6.10 March 8 Issued 100 kg March 12 Purchased 100 kg.@Rs. 6.35 March 18 returned to supplier 50 kg, purchased on march 3, March 24 Issued 150 kg March 26 Returned to storeroom 30 kg March 30 Issued 50 kg Required: Prepare Materials Ledger Cards under: (a)FIFO (b)ACM (c)LIFO Check figures: Ending inventory: (a)Rs. 508 (b)Rs. 492.80 (c)Rs. 480 Question no 7
The inventory on dec.1, 2003 of a merchandise of a corporation consisted of 180 units priced at a cost of RS. 2. Purchase during the month was as follows: Date quantity (Units) 50 100 70 40 110 unit cost (RS.) 2.00 1.90 2.10 2.20 2.30

Dec. 06 Dec. 12 Dec 14 Dec 18 dec 23

up to dec 31st all the inventory was sold at RS 3 per unit expet 200 units REQUIRED: 1) value of closing inventory using a) Weighted average b) FIFO c) LIFO. 2) Gross profit using weighted average method only.

Question no 8

The following information is to be used in costing inventory on October 31. Inventory on October 1 800units at RS 1.6 each Purchase October 5 Purchase October 9 Purchase October 24 Issued October 16 Issued October 27 200units at RS 1.70 each 200units at RS 1.80 each 300units at RS 1.90 each 400units 500units

REQUIRED: the cost of material used and the cost assigned to the October 31,inventory By each of the following perpetual inventory methods: a) Average method b) Most recent purchased price c) FIFO d) LIFO

Question no 9 Following are inventory changes of a certain material during the month of April 2003. April 1st April 5 April 8 April 14 April 18 April 22 April 25 April 30 balance b\d purchased issued purchased 150kg @ RS 6.00 150kg @ RS 6.10 100kg 100kg @ RS 6.35

returned to supplier 50kg.purchased on April 5. issued returned to store room issued 150kg 30kg 50 kg

REQUIRED: prepare materials ledger cards under a) FIFO b) ACM c) LIFO d) Closing stock

Question no 10 The following transaction affecting material no.225 occurred during April 2003

April 1 April 3 April 5 April 6 April 7 April 10 April 14 April 19 April 22 April 26 April 28 April 30

balance on hand 500 gallons @ RS 20 per gallon. received 1200 gallons @ RS 21 per gallon. issued 600 gallons received 1000 gallons @ RS 19 per gallon. returned to vendor 200 gallons received on April 6. issued 900 gallons. received 600 gallons @ RS 20 per gallon. issued 800 gallons. issued 400 gallons. received 1500 gallons @ RS 18 per gallon. 100 gallons were returned from the factory to the store room. issued 700 gallons.

REQUIRED: prepare materials ledger card using a) FIFO method b) LIFO method Question no 11 During September 2003, PAK football manufactured worked on two orders for production export quality footballs. A synthetic leather coded as ML-19 was used for the production. Following are receipts and issues of ML-19 during the period. September 1 September 1 Sep 2 Sep 3 Sep 4 Sep 5 balance 100sq ft @ RS 20 received 100sq ft @ RS 22 issued 120sq ft received 200sq ft @ RS 24 returned to store room (treat as oldest issue) 20 sq ft. issued 220sq ft

REQUIRED: prepare stores ledger cards under each of the following assumptions as to Flow of materials cost a) FIFO b) LIFO c) Weighted average cost.

Question no 12 The information below is from the store ledger cards of a certain of material for The month of November.

Date Nov 1 Nov 10 Nov 20 Nov 28 balance purchase purchase purchase

units 100 100 200 100

Per unit (RS) 100 95 90 88

Date Nov 5 Nov 12 Nov 23 Nov 24

Requisition units 101 102 103 104 80 70 60 120

Sales were 330 units @ RS 150. marketing and admin exp were RS 6000 and RS 2000 respectively. REQ a) find value of ending inventory using 1 FIFO method 2 LIFO methods b) prepare comparative income statements based on above transaction for the month of Nov using FIFO and LIFO methods of costing.