At the beginning of May, the raw material inventory level was 150 units, valued at RM450. In May, additional supplies were received in stores as follows: Date Quantity (units) Costs (RM) 10 May 250 875 18 May 250 1,000 25 May 250 1,125 Included in the costs is the carriage inwards of RM100, which is included as part of the stock costs. The issues from stores during May were as follows: Date Quantity (units) Date Quantity (units) 8 May 100 17 May 225 10 May 21 May 30 May 200 25 12 May 75 20 On 20 March, 50 units were returned from the production department. An inventory check on 31 May revealed that 40 units were stolen. Required: a. Prepare a stores account for May using the FIFO method. b. Prepare a stores account for May using the LIFO method. c. Explain the reasons for the stock discrepancy at the end of the May.
At the beginning of May, the raw material inventory level was 150 units, valued at RM450. In May, additional supplies were received in stores as follows: Date Quantity (units) Costs (RM) 10 May 250 875 18 May 250 1,000 25 May 250 1,125 Included in the costs is the carriage inwards of RM100, which is included as part of the stock costs. The issues from stores during May were as follows: Date Quantity (units) Date Quantity (units) 8 May 100 17 May 225 10 May 21 May 30 May 200 25 12 May 75 20 On 20 March, 50 units were returned from the production department. An inventory check on 31 May revealed that 40 units were stolen. Required: a. Prepare a stores account for May using the FIFO method. b. Prepare a stores account for May using the LIFO method. c. Explain the reasons for the stock discrepancy at the end of the May.
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter9: Working Capital
Section: Chapter Questions
Problem 26E
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