Question 6

1. Eghosa started a business in April, selling maize.

   The following are the details of his purchases and sales:
   April                                                                            N
   4th        purchases 100 bags @                                    1,000 each
   5th        purchased 150 bags @                                    1,100 each
   8th        sold 80 bags
   13th      sold 90 bags
   20th      purchased 70 bags @                                      1,200 each
   22nd     sold 50 bags
   25th      sold 60 bags
   28th      purchased 90 bags @                                      1,250 each
   30th      sold 50 bags
   
   You are required to prepare a store ledger using FIFO method of pricing to show:

   (a)Cost of goods sold;

   (b)Value of closing stock.

2. STORE LEDGER USING FIFO METHOD

   DATE	RECEIPTS		ISSUE				BALANCE
   	QTY	PRICE	VALUE	QTY	PRICE	VALUE	QTY	VALUE
   		N	N		N	N		N
   4/4	100	1,000	100,000	-	-	-	100	100,000
   5/4	150	1,100	165,000	-	-	-	250	265,000
   8/4	-	-	-	80	1,000	80,000	170	185,000
   13/4	-	-	-	20	1,000	20,000	150	165,000
   				70	1,100	77,000	80	88,000
   20/4	70	1,200	84,000	-	-	-	150	172,000
   22/4	-	-	-	50	1,100	55,000	100	117,000
   25/4	-	-	-	30	1,100	33,000	70	84,000
   				30	1,200	36,000	40	48,000
   28/4	90	1,250	112,500	-	-	-	130	160,500
   30/4	-	-	-	40	1,200	48,000	90	112,500
   	-	-	-	10	1,250	12,500	80	100,000
   Total	410		461,500	330		361,500

   1. Cost of goods sold = N 361, 500
   2. Value of closing stock = N 100, 000