Activity Tindo ltd buys and sells product Q-3. It values stock on the basis of last in first out (LIFO). On 1 June 2010, stock in hand consisted of 4,500 units which were acquired at ksh. 50 per unit. The operations for the month were as follows: Date Purchases Sales June 2 5,000 @ ksh.48 6,000 @ ksh. 60 5 5,500 @ ksh. 49 7 4,000 @ ksh. 50 11 7,000 @ ksh. 61 12 5,000 @ ksh. 50 13 6,000 @ ksh. 47 18 7,000 @ ksh. 62 19 8,000 @ ksh. 64 20 6,000 @ksh. 49.50 21 5,000 @ ksh. 65 22 7,000 @ ksh. 50 25 6,000 @ ksh. 49 26 2,000 @ ksh. 47 28 500 @ ksh. 60 29 14,000 @ ksh. 64 The company incurred operating cost of ksh. 450,000 during the month. Required: Prepare the stores ledger card. Determine the closing stock valuation. Prepare the trading account for the month.
Activity
Tindo ltd buys and sells product Q-3. It values stock on the basis of last in first out (LIFO). On 1 June 2010, stock in hand consisted of 4,500 units which were acquired at ksh. 50 per unit. The operations for the month were as follows:
Date Purchases Sales
June 2 5,000 @ ksh.48
6,000 @ ksh. 60
5 5,500 @ ksh. 49
7 4,000 @ ksh. 50
11 7,000 @ ksh. 61
12 5,000 @ ksh. 50
13 6,000 @ ksh. 47
18 7,000 @ ksh. 62
19 8,000 @ ksh. 64
20 6,000 @ksh. 49.50
21 5,000 @ ksh. 65
22 7,000 @ ksh. 50
25 6,000 @ ksh. 49
26 2,000 @ ksh. 47
28 500 @ ksh. 60
29 14,000 @ ksh. 64
The company incurred operating cost of ksh. 450,000 during the month.
Required:
Prepare the stores ledger card.
Determine the closing stock valuation.
Prepare the trading account for the month.
Step by step
Solved in 6 steps with 10 images
