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    Inventory Ques

    Uploaded by

    Yashi Gupta
    The document provides information on stock valuation according to AS-2 for different companies. It includes details on stock amounts and values as of a specific date for one company, raw material purchases and production details to calculate inventory values for a second company under different sale scenarios, and inventory and sales information for a fuel distributor to calculate ending inventory, cost of goods sold, and profit/loss for the month using FIFO costing.

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    Inventory Ques

    Uploaded by

    Yashi Gupta
    36 views1 page
    The document provides information on stock valuation according to AS-2 for different companies. It includes details on stock amounts and values as of a specific date for one company, raw material purchases and production details to calculate inventory values for a second company under different sale scenarios, and inventory and sales information for a fuel distributor to calculate ending inventory, cost of goods sold, and profit/loss for the month using FIFO costing.

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    The document provides information on stock valuation according to AS-2 for different companies. It includes details on stock amounts and values as of a specific date for one company, raw material purchases and production details to calculate inventory values for a second company under different sale scenarios, and inventory and sales information for a fuel distributor to calculate ending inventory, cost of goods sold, and profit/loss for the month using FIFO costing.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    36 views1 page

    Inventory Ques

    Uploaded by

    Yashi Gupta
    The document provides information on stock valuation according to AS-2 for different companies. It includes details on stock amounts and values as of a specific date for one company, raw material purchases and production details to calculate inventory values for a second company under different sale scenarios, and inventory and sales information for a fuel distributor to calculate ending inventory, cost of goods sold, and profit/loss for the month using FIFO costing.

    Copyright:

    © All Rights Reserved
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    8.

    From the following information find out the value of stock as on 31-3-2007 according to AS-2
    a. Cost of physical stock on 31-3-2007 was Rs. 2,00,000.
    b. Cost of stock held as consignee was Rs. 40,000
    c. Stock was expected to realize the normal selling price of 150% of the cost except for the following goods:
    (a) goods costing Rs. 10,000 were damaged and an expenditure of 10% of the normal selling price was necessary to
    realize the cost.
    (b) goods costing Rs. 20,000 were damaged beyond repair and were expected to realize Rs. 5,000 only.

    9. Rajasthali Lid. manufactures a product 'OM' using a raw material M1. The Company took Bank Overdraft at an
    interest rate of 15% per annum specially for the purpose of purchasing 10,000 kg. of material MI at Rs.100 per kg.
    The purchase price includes GST Rs. 10 per kg in respect of which full credit is admissible. Freight, loading and
    unloading charges incurred amounted to Rs. 40,800. Interest on such Bank Overdraft amounted to Rs. 25,000. Normal
    transit loss is 2%. The company actually received 9,760 kg. and consumed 9,500 kg. One unit of finished product
    requires five units of Raw Material. Direct labour cost amounted to Rs. 2,28,000, Direct overheads cost amounted to
    Rs. 57,000. Total Fixed overheads for the year were Rs. 1,20,000 on normal capacity of 20,000 units of Finished
    Goods. During the year sales of product OM' were Rs. 7,50,000 @ Rs. 750. There were no opening inventories. With
    reference to AS 2 "Valuation of Inventory", calculate the amount of abnormal loss (if any), Closing Inventory of
    Finished Goods and Raw Materials if
    (a) Finished units can be sold @ Rs. 800 subject to payment of 10% brokerage on selling price. Replacement cost of
    Raw Materials is Rs. 90 per kg.
    (b) Finished units can be sold @ Rs. 700 subject to payment of 10% brokerage on selling price. Replacement cost of
    Raw Materials is Rs. 90 per kg.

    10. The cost of closing stock was Rs.10,00,000. Realizable value 120%. Realisable expenses 5%. What amount of
    stock will be shown in the Income Statement of Malaya and Company which is not a going concern?

    11. HP is a leading distributor of petrol. A detailed inventory of petrol is taken when the books are closed at the end of
    each month. At the end of the month following information is available:
    Sales Rs. 47,25,000
    General overheads cost Rs. 1,25,000
    Inventory at the beginning 1,00,000 litres @ Rs. 15 per litre
    Purchases :
    June 1 Two lakh litres @ Rs.14.25
    June 30 One lakh litres @ Rs. 15.15
    Closing inventory 1.30 lakh litres Compute the following by the FIFO method
    a. Value of Inventory on June 30
    b. Amount of cost of goods sold for June
    c. Profit/Loss for the month of June.

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