Question 6
-
XYZ Nigeria Ltd makes use of component k in the manufacturing of her goods.
On the 1st of October 2018, the company has 50 units of component k valued at N 40 each in stock.
The following transactions took place in respect of the component.
1/10/18 Received 100 units @ N 45 each
2/10/18 Issued 80 units
4/10/18 Received 150 units @ N 60 each
12/10/18 Issued 90 units
14/10/18 Received 200 units @ N 80 each
14/10/18 Issued 180 units
You are required to prepare stock account for the month of October 2018 using FIFO method showing the total stock balance and value.
Observation
Comments
Many candidates avoided this question however those that attempted the question performed averagely well. However, the mistake candidates made was leaving out the title of the account and the total stock balance computation which is - Stock Account Using FIFO Method For the Month of October, 2018 and 150 units @ N 80 each = N12,000 which was awarded reasonably ticks.
The responses expected from candidates are:
6. XYZ Nigeria Ltd
Stock Account Using FIFO Method For the Month of October, 2018√
Date |
Receipts |
Issues |
Balance |
||||||
Quantity (Units) |
Cost per unit(N) |
Amount |
Quantity (Units) |
Cost per unit(N) |
Amount |
Quantity (Units) |
Cost per unit(N) |
||
1/10/18 |
50 |
40 |
2,000 √ |
- |
- |
- |
50 √ |
2,000 √ |
|
1/10/18 |
100 |
45 |
4,500√ |
- |
- |
- |
150 √ |
6,500√ |
|
2/10/18 |
- |
- |
- |
50√ |
40√ |
2,000√ |
100 |
4,500 |
|
|
|
|
|
30√ |
45√ |
1,350√ |
70√ |
3,150√ |
|
|
|
|
|
|
|
3,350 |
|
|
|
4/1018 |
150 |
60 |
9,000√ |
- |
- |
- |
220√ |
12,150√ |
|
12/10/18 |
- |
- |
- |
70√ |
45√ |
3,150√ |
150 |
9,000 |
|
|
|
|
|
20√ |
60√ |
1,200√ |
130√ |
7,800√ |
|
|
|
|
|
|
|
4,350 |
|
|
|
14/10/18 |
200 |
80 |
16,000√ |
- |
- |
- |
330√ |
23,800√ |
|
14/10/18 |
- |
- |
- |
130√ |
60√ |
7,800√ |
200 |
16,000 |
|
14/10/18 |
|
|
|
50√ |
80√ |
4,000√ |
150√ |
12,000√ |
|
The total stock balance using FIFO Method is
150 units√@ #80 each√= N12,000√