Question 6
Azuka, a building materials merchant made the following transactions.
Purchases:
January 1, 2019: 2,000 units at N10 per unit
January 20, 2019: 1,500 units at N12 per unit
April 4, 2019: 3,000 units at N15 per unit
Sales were made as follows:
January 8, 2019: 800 units
January 22, 2019: 1,000 units
February 20, 2019: 600 units
April 15, 2019: 2,000 units
You are required to prepare a store ledger control account using First-in, First-out (FIFO) method to determine the:
(a). value of material sold;
(b). number and value of closing stock at the end of April, 2019.
Observation
Many candidates attempted this question and performed brilliantly. Candidates gained highest marks from this question. However, the only mistake candidates made was leaving out the title of the account which is - Store Ledger Control Account Using FIFO Method As At 30th April, 2019.
The responses expected from candidates are:
Store Ledger Control Account Using FIFO Method As At 30th April, 2019√
Date |
Receipts |
Issues |
Balance |
||||||
Quantity (Units) |
Rate (N) |
Value |
Quantity (Units) |
Rate (N) |
Value |
Quantity (Units) |
Value |
||
January 1 |
2,000 |
10.00 |
20,000 √ |
- |
- |
- |
2,000 √ |
20,000 √ |
|
January 8 |
- |
- |
- |
800 √ |
10.00 |
8,000 √ |
1,200 √ |
12,000 √ |
|
January 20 |
1,500 |
12.00 |
18,000 √ |
- |
- |
- |
2,700 √ |
30,000 √ |
|
January 22 |
- |
- |
- |
1,000 √ |
10.00 |
10,000 √ |
1,700 √ |
20,000 √ |
|
February 20 |
- |
- |
- |
200 √ |
10.00 |
2,000 √ |
1,500 √ |
18,000 √ |
|
February 20 |
|
|
|
400 √ |
12.00 |
4,800 √ |
1,100 √ |
13,200 √ |
|
April 4 |
3,000 |
15.00 |
45,000 √ |
- |
- |
- |
4,100 √ |
58,200 √ |
|
April 15 |
- |
- |
- |
1,100 √ |
12.00 |
13,200 √ |
3,000 √ |
45,000 √ |
|
April 15 |
- |
- |
- |
900 √ |
15.00 |
13,500 √ |
2,100 √ |
31,500 √ |
|
|
|
|
|
|
|
51,500√ |
|
|
|
(a). Value of material sold = N 51,500√
(b). Units and value of closing stock:
= 2,100 units at N31,500 √