Inventories-Test 2

Under inflationary conditions, LIFO will lead to :

Calculate the value of purchase through following details :

Opening stoc            Rs.   20,000

Sales                            Rs.1,50,000

Gross Profit Margin 20% of sales

Closing stock               Rs.30,000

Physical Inventory system is also known as :

Closing stock is generally valued at :

What are the consequences of undervaluation of closing stock ?

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As on 1st March                                As on 31st March

Stock Rs.1,80,000                                        1,00,000

The company made Purchase of Rs.3,40,000 on credit. During March, the company paid Rs.3,50,000 to suppliers. The goods are sold at 25% above cost. The sales for the month of March were

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

Which method of inventory valuation is widely accepted by Income Tax Authority :

Damaged inventory should be valued at :

Inventory cost does not include :

Which of these is not an objective of inventory valuation ?

The following data has been provided by Omega Ltd :

Item No.        Units       Cost                Realization

(per unit)          value (per unit)

1                          2              10                              11

2                        10               5                                4

3                          2                2                                2

The value of inventory on items will be :

When closing inventory will be overstated it will result in :

Inventory Valuation does not affects :

Opening Stock             Rs.  10,000

Purchases                     Rs.1,10,000

Closing stock                Rs.  20,000

Find out total sales if profit margin is 30% on cost of sales :

Cost of Goods sold is equal to :

Inventories are assets :

On 31st March 2001, the closing stock of X Ltd. was Rs.3,45,000. On 1st April 2001, stock of Rs.2,25,000 was destroyed by fire. If the Balance sheet of the company  on 31st March 2001 was finalized on 25th April, 2001 then the Balance sheet will show closing stock at :

A business man purchased goods for Rs.25,00,000 and sold 70% of such goods during the accounting year ended 31st March, 2005. The market value of remaining goods was Rs.5,00,000. He valued the Closing stock at Rs.5,00,000 and not at Rs.7,50,000 due to :

In case goods are manufactured and segregated for specified consumers, the best method for valuation of inventory would be :

If average stock is Rs.20,000. Closing stock is Rs.4,000 more than value of opening stock. Closing stock will be :

Which method matches current cost with current revenue ?

AS – 2 Prescribes the use of which method of stock valuation ?

If Gross profit is 1,00,000 and G.P. Ratio is 25%. Find the value of Sales

Rs.

Opening stock               40,000

Closing stock                  50,000

Purchases                     5,50,000

Return outward                 5,000

Return inward                  20,000

Carriage inward                  5,000

If gross profit is 2% of sales, the gross sales will be :

Closing stock is :

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 ?

Stock on 15th April 2008 is Rs.50,000. Purchases made in 2nd week is Rs.2,000, sales made in 2nd week is Rs.12,000. Gross Profit on Sales is 25%. Closing stock as on 31st March, 2008 will be :

What is the amount of purchase when opening stock = Rs.3,500, closing stock = Rs.1,500, cost of goods sold = Rs.22,000.

In conditions of inflation, which method will lead to the lowest value of stock ?