Practice With MT - Inventory

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CA FOUNDATION COURSE
Practice with MT
PRINCIPLES AND PRACTICE OF ACCOUNTING
Inventory Valuation
1. The following are the details supplied by Agni Ltd. in respect of its raw materials for the Month of
December, 2005:
On 31.12.2005, a shortage of 100 units was found, Prepare a Stores ledger as per FIFO and Weighted
Average Method.
2. If average stock is Rs. 20,000. Closing stock is Rs. 4,000 more than value of opening stock. Closing
stock will be
3. Opening Stock = Rs. 6,000 Closing Stock = Rs. 8,000 Cost of Goods Sold = Rs. 87,000 Calculate the
value of Purchases ?
4. Purchases = Rs. 1,10,000, Return outward Rs. 10,000. Goods given away as charity = Rs. 1,500. Goods
distributed as sample = Rs. 1,000. What is the amount of net purchases ?
5. Opening Stock Rs. 40,000 Closing Stock Rs. 50,000 Purchases Rs. 5,50,000 Return outward Rs. 5,000
Return inward Rs. 20,000 Carriage inward Rs. 5,000 If gross profit is 20% of sales, the gross sales will
be?
6. Find out value of Closing Stock : Opening Stock Rs. 70,000 Purchase Rs. 4,16,000 Sales Rs. 5,22,000
Gross profit earned 25% of cost
7. The total cost of gods available for sale with a company during the current years is Rs. 12,00,000 and
the total sales during the period are Rs. 13,00,000. If the gross profit margin of the company is 331
/3% on cost, the closing inventory during the current year is
8. A company is following weighted average cost method for valuing its inventory. The details of its
purchase and issue of raw-materials during the week are as follows:
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1.12.2005 opening stock 50 units value Rs. 2,200.
2.12.2005 purchased 100 units @Rs.47.
4.12.2005 issued 50 units.
5.12.2005 purchased 200 units @Rs.48.
The value of inventory at the end of the week and the unit weighted average costs is?
9. Physical verification of stock was done on 23rd june. the value of stock was rs 4,80,000. following
transactions took place between 23rd june and 30th june –
1 . Out of goods sent on consignment, goods costing Rs 24,000 were unsold.
2 . Purchases of Rs 40,000 were made, out of which goods worth Rs 16,000 were delivered on 5th
July.
3 . Sales were Rs 1,36,000, which include goods worth Rs 32,000 sent on approval. Half of these
goods were returned before 30th June, but no intimation is available regarding the remaining goods.
4. Goods are sold at cost plus 25%. However, goods costing Rs24,000 had been sold for Rs12,000.
You need to determine the value of stock on 30th June.
10. Bharat Indian Oil is a bulk distributor of petrol. A periodic inventory of petrol on hand is taken when
the books are closed at the end of each month. The following summary of information is available for
the month :
Sales Rs.9,45,000
General administration cost Rs.25,000
Opening Stock: 1,00,000 litres @ Rs.3 per litre Rs.3,00,000
Purchases (including freight inward):
June 1 2,00,000 litres @ Rs.2.85 per litre
June 30 1,00,000 litres @ Rs.3.03 per litre
June 30 Closing stock 1,30,000 litres
11. C Ltd. recorded the following information as on March 31,2011:

Stock as on April 01, 2010 Rs. 80,000
Purchases Rs.1,60,000
Sales Rs.2,00,000
It is noticed that goods worth Rs.30,000 were destroyed due to fire. Against this, the insurance
company accepted a claim of Rs. 20,000.
The company sells goods at cost plus 33 1/3%. The value of closing inventory, after taking into
account the above transactions is?
12. On April 07, 2005, i.e, a week after the end of the accounting year 2004-05, a company undertook
physical stock verification. The value of stock as per physical stock verification was found to be
Rs.35,000. The following details pertaining to the period April 01, 2005 to April 07, 2005 are given:
I. Goods costing Rs.5,000 were sold during the week.
II. Goods received from consignor amounting to Rs.4,000 included in the value of stock.
III. Goods earlier purchased but returned during the period amounted to Rs.1,000.
IV. Goods earlier purchased and accounted but not received Rs.6,000.
After considering the above, the value of stock held as on March 31, 2005 ?
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11. C Ltd. recorded the following information as on March 31,2011:

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