Inventories-Test 3

Calculate Closing stock using FIFO Method :

Particulars                            Units                Rate

Opening stock                         100                Rs.50

Purchases                                    50                Rs.40

Issue                                            125

Cost of Goods sold =

Opening Stock = Rs.6,000

Closing Stock = Rs.8,000

Cost of Goods Sold = Rs.87,000

Calculate the value of purchases ?

The opening stock is overstated by Rs.10,000 and closing stock is understated by Rs.15,000. The impact of these on net profit for the current year is :

The revised Accounting Standard – 2 (Valuation of Inventories) permits which of the following method for computation of cost of inventory ?

When closing stock represents the latest purchased goods, then the stock has been issued under

Four washing machines are in stock with a dealer

Model A           Model B           Model C          Model D

Cost                                    15,000               20,000            22,500            30,000

Realizable value               13,500                22,000            20,500            32,500

Find out the value of stock for balance sheet as per AS – 2

The success of Perpetual Inventory System depends upon :

X & Company, a furniture dealer, due to some business problem could take physical stock taking on April 20 and arrived at the cost at Rs.5,25,000. Between April 01 and April 20 firm even though purchased goods worth Rs.3,25,000 including credit purchases of Rs.75,000 only goods costing Rs.50,000 was not actually received before April 20. Cost of goods held at godown on March 31 was :

If the closing stock is increased by Rs.5,000 and Gross Profit rate is 10%, then :

At the time of stock taking conducted on 31st March 2009, there were contain goods costing Rs.1,000 that were lying in stock in the godown. These goods were billed for Rs.1,200 on March 15, 2009. What should be included for calculating inventory for the year ended on 31.3.2009 ?

If cost of goods sold is Rs.80,700, Opening stock Rs.5,800 and closing stock Rs.6,000, then the amount of purchase will be :

Find the value of closing stock :

A                          B                             C                         D

Historical cost                 20,000               18,000                     24,000             25,000

NRV :                                 18,000                24,000                    23,000             26,000

Opening stock 300 units at Rs.8,00,000 purchases 300 units at Rs.8,50,000 sold 500 units.

Find closing stock using weighted average method.

Calculate the amount of gross profit :

Opening stock                              – Rs.   24,000

Closing stock                                 – Rs.   15,000

Sales                                                – Rs.6,00,000

Cost of goods sold                         – Rs.4,55,000

If closing stock is undervalued by Rs.10,000 and opening stock is overvalued by Rs.10,000, then the impact on the gross profit of the business would be :

A manufacturer purchased an item of raw material in the month of December as detailed below :

Date                      Unit Price (Rs.)                Per Unit

1st Dec                             500                                   50

15th Dec                           200                                   60

28th Dec                           300                                   70

Material was issued on 29th December 2011, 600 units as per LIFO method. Closing stock as on 31st December, 2011 would be :

Following figures have been extracted from the books for the year ended 31st March, 2011 :

(i) Cost of goods sold Rs.35,000

(ii) Closing stock as on 31st March, 2011 Rs.8,000

(iii) Opening stock as on 1st April, 2010 Rs.10,000

(iv) Purchase Return Rs.5,000

What would be the amount of gross purchases for the year ended 31st March, 2011 ?

Mr. A, a dealer of construction material, due to unavoidable reasons took physical stock of inventories on 11th April. The cost of stock was Rs.4,20,000 (including goods received on consignment). The dealer received goods costing Rs.1,00,000 in March for sale on consignment basis. 20% of the goods has been sold before 31st March and 60% between 1st April & 10th April. What was the cost of stock as at 31st March ?

Sterling limited revealed the following information as on 31st March 2013 :-

Stock as on April 01, 2012                         Rs.1,60,000

Purchases during the year                         Rs.3,20,000

Sales during the year                                   Rs.4,00,000

The goods worth Rs.60,000 were destroyed due to floods. Against the claim the insurance company accepted a claim of Rs.40,000. The company’s gross profit on sales has remained constant at 25%, the value of closing stock as on 31st March would be :

From the following information provided by M/s xyz, calculate the value of inventory

Item No.       No. of units      Cost per unit       Market price per unit

1                               14                       100                                   120

2                               15                         50                                      40

3                                20                       20                                       20

Opening stock 400 units @ Rs.20 per unit. Purchases 200 units @ Rs.25 per unit and issued 250 units. Find out the value of closing stock by LIFO method.

Net realizable value is :

Mr. X took physical stock of his inventory on April 20 and the value of stock of cost was Rs.1,60,000, between April 01 and April 20 he sold goods worth Rs.40,000 as detailed below :

(i) Damaged goods sold for Rs.15,000 at a loss of 20% to cost

(ii) Balance goods sold were 25% profits to cost

The damaged goods to be valued at net realizable value and other stock to be valued at cost. On this basis, the value of closing stock as on March 31 was

The opening stock is overstated by Rs.10,000 & closing stock is understated by Rs.15,000. The impact of these on net profit for the current year is :

Which of the following is an exception to Non-historical cost method of valuation ?

Opening stock                     Rs.50,000

Goods available for Sales  Rs.1,60,000

Sales                                       Rs.1,60,000

Gross Profit                                          30%

The closing stock will be :

If average stock is Rs.14,000, closing stock is Rs.3,000 more than opening stock then value of closing stock will be :

Consider the following for Ram Co. for the year 2013-14 :

Cost of goods available for sale               Rs.1,00,000

Total Sales                                                    Rs.  80,000

Opening inventory of goods                      Rs.  20,000

Gross profit margin                                                25%

Closing inventory of goods for the year 2013-14 was.

Gee Ltd. follows perpetual inventory system. On March 31st 2014, the company took physical inventory verification and found the value of inventory as per records different from the value as per the physical inventory due to :

Goods purchased for Rs.10,000 were received and included in the physical inventory but no entry were made in the books. Goods costing Rs.30,000 were sold and entered in the books but the goods are yet to be delivered.

Goods worth Rs.5,000 are returned to the supplier but is omitted to be recorded. If the inventory is valued in the books at Rs.1,50,000, the value of the physical inventory is :