Valuing Material

Issues or
Materials Costine
Methods of Valuing Material Issues or Mater.
IL-83
erials Costin Method

Stock Account
Compvour method of pricingshowing
efe the the balance
March 31, the end of the
on
I1-82 above transactions accordine to the 1sues, why this

Prepare Stores
Ledger Account for the to
'LIFO method ot State clearly your

value of
the closing
stock.
method has been
adopted and the price ycar.
and
pnicing issue
of materials. Rs. 25 + 20 kgs. Rs. 26.60+ 190 kgs.
100 value okad of pricing is suitable
of pricing in times of
rising prices. Value of Stock Rs., 612.50
140 kgs. @ @ Rs. method
Rs. 8,402 (i.e. LIFO 50units Rs. 5.75] (i.e. 65
Ans. [Value of stock and issued the
material in the following order 23 Ans.
units @
Rs. 5 +
Adarsh Company purchased
Chow the Stores Ledger entries as they would appear when using8
4. Units Unit Cost
Rs. Show ehted average method, 6) the simple average method, and (c) the LIFO
method
300 3.00 in connecion with the following transacti
Purchase ricing issues,
Ist January
Purchase
600 4.00 Unit
Sth January Price
500
10th January Issue Rs.
700 4.00 1 Balance in hand b/f 300
Purchase April 2.00
12th January 800 2 Purchased 200
15th January Issue 2.20
Purchase 300 5.00 4 Issued 150
20th January 100 6 Purchased 200
30th January Issue 2.30
stock as on 31st January and state its value under 1 1 Issued 150
Ascertain the quantity of closing ac 0f the 200
the issues: (a) Weighted Average Cost, (6) FIFO, (c) LIFOu 19 Issued
following methods of pricing RS. 1.e. 200 units @ Rs. 4 300 i 22 Purchased 200 2.40
Ans. [(a) 500 units @ Rs.
4.44 = Rs. 2,220; (6) 2,300 +
Rs. 5; 150
@ Rs.5 + 300 units Rs. 3] "27 Issued
(c) Rs. 1,900 i.e. 200 units what are the effects of each method ?
information, prepare the Stores Ledger Card based on the In a period of rising prices such as the above,
With the help of the following rValtc of Stock: (a) Rs. 570 (i.e. 250 units @ Rs. 2,28) ; (6) Rs. 537; (c) Rs. 520 (i.e. 200 units
issues
average method of pricing units @ Rs. 2.401
balance 24,000 kgs. @ Rs. 7,500 per tonne.
Opening @Rs. 2 +50
Sept.I and issued the material "M' in the following orde
Purchase 44,000 kgs. @ Rs. 7,600 per tonne.
XY Ltd. has purchased Unit Unit cost
Issue 10,000 kgs. 2001
Rs.
Issue 16,000 kgs. Purchase 300
Ist Dec.
Issue 24,000 kgs. Purchase 600
Purchase 10,000 kgs. @ Rs. 7,800 per tonne. 4th Dec.
13 Issue 400
6th Dec.
18 Issue 24,000 kgs. 10th Dec. Purchase 600
Purchase 50,000 kgs. Rs. 8,000 per tonne.
22 15th Dec. Issue 1,000
28 Issue 30,000 kgs. 20th Dec. Purchase 400
30 Issue 22,000 kgs. 23rd Dec. Issue 200
Ans. Issue Price: Sept. 1-10,000 kgs. @ Rs. 7.565 per kg.; would you recommend
issue of materials the above case? in
Which of the methods of pricing
be its value (in each
Sept. 5-16,000 kgs. @Rs. 7.565 per kg. Ascertain the quantity of closing stock as on 31st December and state what will
Sept. 12-24,000 kgs. Rs. 7.565 per kg.; recommended by you and (ii) weighted average cost.
case) if issues are made under the () method
Sept. 18-24,000 kgs. Rs. 7.648 per kg.; (B.Com. Punjab)
Sept. 28-30,000 kgs. Rs. 7.974 per kg. Ans. [) Last-in-First-out Method; (i) Quantity
Stock 300 units: Value
of Closing under LIFO Method
Rs. 3 + 200 units @ Rs. 5; Value under Weighted Average Cost Rs.
Sept. 30-22,000 kgs. @ Rs. 7.974 per kg.] Rs. 1,300 i.e. 100 units
Following is the record of Receipt and Issue of a certain material in a factory during a week: 1,429]
The standard price of a material is fixed Rs. 12 per unit. The following purchases and issues were
at
2001 10.
the Stores Ledger Account showing how the cost of materials
AprilOpening balance 50
1 tonnes @ Rs. 10 a tonne made during March 2002. Prepare will be recorded under the standard price method.
issued and value of balance in stock
" 3 Issued 30 tonnes Dated Particulars Quantity Rate
4 Received 60 tonnes Rs. 10.125 a tonne March Received 1,800 units 12
5 Issued 25 tonnes (stock verification reveals loss of one tonne) 500 units 14
6 Received back from complete work order 10 tonnes (previously issued @ KS. 1 Received
Issued 1,000 units
tonne) 21 Recieved 600 units
7 Issued 40 tonnes. the 24 Issued 700 units
Method, Calcua
ASSuming that the issue of materials is priced on the Weighted' Average 28 Received 900 units
prices of issues on 3rd, 5th and 7th April, 2001. tonne 30 Issued 850 units
Ans, |Issue Price: April 3 = Rs. 300@ Rs. 10 per tonne; April 5 = Rs. 255.50 @ RS. I0.4 P
Also ascertain the efficiency of purchasing materials.
April 7 = Rs. 407.60 Rs. 10.19 per tonne.]
The following transactions occur in the purchase and issue of a material
Ans. 1.250 units Rs. 16,300; Rs. 1,300 unfavourable manufactunng unit,
"EXE" in a
wing details of stores receipts and issues of material
January 19 Purchased 100 at Rs. 5.00 each
February 4 Purchased 25 at Rs. 5.25 each
Pepare
NOv.
the Stock Ledger using Weighted Average Method of valuing the 1ssues.
12 Purchased 50 at Rs. 5.50 each Opening stock 2,000 units @ Rs. 5.00 each
Issued 1,500 units to production.
14 Issued 80
Received 4,500 units@ Rs. 6.00 each.
March 16 Purchased 50 at Rs. 5.50 each 8
Issued Issued 1,600 units to production.
20 80 (from the iSsue of No. 5).
Keturned to stores 100 units by Production Department
27 Purchased 50 at Rs. 5.75 each
 Methods of
Valuing Material Issues or Issues or Materials Costing II-85
Materials Costiny
o f Valuing Material

Method
cach.
6-4-98 250 units
6.50

units@
Rs.

units
o u t of
the
the quantity received on Nov. 4.
Issues 10-4-98 400 units
2400
200
each.
14-4-98 500 units
Raceived
supplier 7.00
Rs.
nadto @
units
Retme
1.000
2,100
units.
Calculate using FIFO
Requin
and LIFO methods of pricing issues
Received
7.50
cach.
p r o d u c t i o n

Rs.
during
consumed the period.
issaedto 1,200units
@ units, the value of materials 15-4-98,
of stock of materials on
2,800

(b) the value the figures in (a) and (b) in part (A) of this question are different under the two
Received
p r o d u c t i o n
places).
to
6.52 per unit)]
d e c i m a l

@Rs. 6
Issued two why the Stores Ledger. (C.A. Inter)
issues used. You need not draw up
upto 3,000 Explain
(i.e. (B) nethods of pricing of material
rates
used in a factorv LIFO Method Rs.
respect of materials
(Use
Consumed: Under FIFO Method Rs. 7,800 and under
19,558

Rs.
stack
l Value of Materials
Method Rs. 2,800 and Under LIFO Method Rs. 2,3001
r e c o r d e d

Rate per unit

Quantity Issued
clesing are
of transactions
Ans. (h)Value of Stock: Under FlFO is taken
Rs. petrol. A periodic inventory of petrol on hanc
Pale Q u a n t i t yR e c e i v e d

odia is a bulk distributor of high Octane

As
The
following

2.10 units of information is

following
units
closed at the end of each month. The summary
Date
400 2.20 the books are
1998:
for the
month
of June, Rs.
3 - 1 2 - 2 0 0 1

500 S00
available
I 5 - 1 2 - 2 0 0 1 2.50 9,45,000
20-12-2001 600 Sales
General administrative cost
25,000
900 3,00,000
2 6 - 1 2 - 2 0 0 1

issues at at weighted average

w thod. stock: 1,00,000
litres @ Rs. 3 per litre
the issues
28-12-2001
sheet pricing Opening
priced
ledger @ Rs. 2.36] Purchases (including freight)
Prepare
a
2.16; 900units aterial was in store valued @ Rs. litres @ Rs. 2.85 per litre
al was received @ Rs. 150 per tonne.pet Ontonne. On 3td June 1 2,00,000
unitsRs,
(S00 1998, litres Rs, 3.03 per litre.
March, of June 30 1,00,000
On Ist
March,
1998,
fifteen
tonnes

material
was issued. March Closing stock
on June 30, 1,30,000 litres.
Iirst-in and first-out, weighted average and last-in and first-out
of is priced according to: data by
issue of materials Compute the following
tonnes
1998 twenty eof issue, if the
the issu
of the
the price (i) Last-In-First-Out method; of inventory costing
Calculate
) First-In-First-Out method method June 30.
(iv) Weighted Average method. (a) Value of
inventory on
;
A verage and (iv) Rs. 2,9111
method
the cost of goods sold for
June.
(iui) Simple
2,950; (i) Rs. 2,90; (b) Amount of
ns. IORs.
2,880;() Rs. is from the
Stores Ledger:
Profit or loss for June.
information
extracted
(c) LIFO
14. Thefollowing Material X FIFO Weighted Average
Nil Rs. Rs. Rs.
Opening Stock
100 Re. I per unit 3,88,500 3,90,000 3,93,000
Purchases Jan. 100Rs. 2 per unit Ans. (a) 7,84,500 7,83,000 7,80,000
Jan. 20 60 for Job W 16 (b) 1,35,500 1,37,000 1,40,000
Issues Jan. 22 (c) December 31 but it was not possible
Jan. 23
60 for Job W 17
18. The annual
accounts of a trading company are to be made upto was valued at cost at Rs. 68,567.
the irst In First Out, Last In Fint Oe 5 at which date the stock
receipts and issues valuation by adopting
until January
Complete the to carry out a stock-taking
Method. Tabulate the values allocated to Job W 16, Job W 17 and the The following transactions
took place between Ist and Sth January :
and the Weighted Average Rs.
aforesaid and discuss from different points of view which method
closing stock under the methods 4,600
you would prefer. Goods received
200
Ans. FIFO LIFO Weighted Average Goods returned
Rs. KS. 10,500
Rs. Sales
120 90 625
Value allocated to Job W 16 60 Returns by customers
Value allocated to Job W 17 80 100 90 The rate of gross profit is 25%% of cost.
160 80 120] statement to show the valuation of stock as at December 31.
Value of Closing Stock Prepare a
15. A timber merchant purchased 1,000 c. ft. of timber logs on 1-4-2001 @Rs. 100 per c. ft. and sioro Ans. [Value ofstock on 31st December: Rs. 72,067]
them in his timber yard for six months for seasoning. In the timber yard the following ien 19,Show the stores ledger entries as they would appear when using
Cxpenseswere incued during the period of seasoning: (a) the Weighted Average method; and (b) the LIFO method.
) Rent... Rs. 1,250 p.m. of pricing issues, in connection with the following transactions
(i) Salaries of 4 guards @Rs. 250 p.m. April Units Value
RS. 50 p Rs.
un Incidental expenditure for maintenance, power, lighting etc. .
( ) Annual share of administration overheads Rs. 10,000. Balance in hand B/F 300 600
0o of the floor area of the godown and other connected operations were incured torsu
2 Purchased 200 440
the seasoned timber.
at I00
Loss in volume of the logs due to seasoning should be taken 001 assuming that 4 Issued 150
Calculate the selling price of the seasoned timber per c, ft. on 1st Oco
the profit 6 Purchased 200 460
margin
Ans. [Rs. 142.47]
on cost was 1S%.
11 Issued 150
1998: 19 Issued
ne tollowing information is provided by Sunrise Industries for the fortnight
of April, 200
Material Exe 22 Purchased 200 480
Stock 1-4-1998 100
on 27 Issued
Purchases 5-4-98 300units at Rs. 5 per unit. 250
units at Rs. 6 aperiod of rising prices such as the above, what are the effects of each method ?
8-4-98 500 units OSing Stock: (a) 150unts @ Rs. 2.28 = Rs. 342; (b) 150 units @Rs. 2 = Rs. 300]
at Rs. 7
12-4-98 600 units at Rs. 8
 A0ods ot atuual
Methods
ofValui
fValuing M a t e r i a l Issues or Materials Costing
I-87
Methods of Valuing
Material Issues or Materish
or Materials Costing 2 units.
5 Issued out to production: N o t NO.

st-in first-out method,

first-in Purchased 48 units (@ Rs. 4 per unit.
A follows the 7
I-S6 sold,
Service Station Issued out 20 units to production.
gallons of petrollast-in first-out method.
the while 9
Purchased 76 units @ Rs. 3 per unit.
In pricing the viz, 6,000 pallod
llons
Service Station
B follows same quantity in
stock,
Rs, 2
6,000 pall aA Received
co
the back into storesS 19 units out of 20 units
both had supplies of Pe issued on 9th August, 2001
On 1st January received additional D Rs.
each Station
8,000 gallons 2.90 pe 15 27 Issued to production: 10units.
the month month w e r e
gallon. During during the the value gallo 527.72 (1.e. 161 units Rs. 3.278 per unitl
during the month and
stations Rs.
gallon. Sales of these
two

Service Station
the protit earned
earned

petrol in aue of Stock

for each Ans.
the year end value otnenory under FiFO and LIFO methods from the following data
Determine
units Rs. 2.00 per unit.
units@
stock at the
close of the
month.

Station B Rs.
1,500; Value Station AA Rs.
of Stock: Station 11,000; Station
Show

Opening
balance:12,000
Received
Ans. (Profit: Station A Rs. 2,100 ; Issued
of a commodit, (units) (units)
BRs. 10,400]
purchases from ime
to
ume large quantities
of purchases duri
ed in the
20,000 Rs. 2.20
manufacturing
concern
following are
the details rchases during the six 1st quarter 16,0,000
21/ A T he
one of its products. 30,000 Rs. 2.40
manu/acture of 26,000
2001. 2nd quarter
ended 3Ist
December,
Quantity Cost price per 100 3rd quarter
25,000 Rs. 2.30 32,000
2001 20 10,000 Rs. 2.25 8,000
5,,000 4th quarter
August 12 21 were made on the first date of the d
12,5,500 csume that purchases
September15 10,000 19 Ssu
A
nventory : (a) Under FIFO method Rs. 34,000 (i.e. 5,000 units@ Rs. 2.30+ 10,000
October 20 18 Under LiFO method RS. 30,700 (.e. 12,000 units @ Rs. 2+ 1,000 units @
7,500 Y Rs. 2.25) : (b)
November 3 18
units
units @ Rs. 2.25]1
6,000 Rs.
2.20+ 2,000
material in
December 17 ollowing transactions
occurred in purchases and issue of an organisation during
December 20
1,500 The
which were valued at Rs. 19 per 100 October, 2001
7,500 units in stock at July 1, 2001, Rate
There were
six months were as under: Receipts dated Quantity
Quantities issued from Store during the 200 units Rs. 24.00 per unit
4-10-2001
2001 150 units Rs. 23.00 per unit
5,000 10-10-2001

100 units Rs. 24.00 per unit

July 25
August 28
4,000 18-10-2001
Rs. 23.50 per unit
100 units
September 29 12,500 22-10-2001

10,000
Issued dated Quantity
October 30
5-10-2001 250 units
November 15 9,000 200 units
7,500 12-10-2001
December 29 250 units
and the closing stock valued ? Prepare a Stores Ledger 25-10-2001
At what prices should the issues be charged 200 units Rs. 25.00 per unit.
1-10-2001 was
Account illustrating your views. The stock on
Account first by adopting FIFO method of charging
material issued
at weighted average price. Value of stock Rs. 359 i.e. 2,000 units @ Rs Prepare the Stores Ledger
Ans. Issues should be charged LIFO method.
17.95 per 100 units] and secondly by 50 units@Rs. 23.50; Under LIFO Method
Rs.
books of accounts of a manufacturing concem as Under FlFO Method Rs. 1,175 (i.e.
22 From the following transactions extracted from the Ans [Value of Stock:
value of raw material in the month, and (b) R s . 25]
on 31st December, 2001, work out (a) consumption 50 units
1,250 (i.e. valued at
the following two methods of pricing had in stock 10,000 brushes
value of closing stock as on 31st December, 2001 under October, 2001, Quality Brush Company
26. At the beginning of were made during the month
as follows
issues Further purchases
Rs.10 each.
ir) LIFO. Brushes Rs. 12.50
(0 FIFO 7th October 4,000
Show the results in a tabulated form. October 6,000 Brushes Rs. 15.00
14th
Rate per unit
Quantity in
24th October 8,000 Brushes R s . 16.50
units in Rupees
2001 Issues to shop floor were as follows
December 1 Opening stock 300 9. 70
16th October 16,000 Brushes
3 Purchase 250 9.80
28th October 10,000 Brushes
11 Issue 400
10.05 You are required that materials were
15 Purchase 300 October on the assumption
card for the month of
(a) to prepare a stores ledger
20 Issue 210 and
issued on the First-in-First-out principle, the weighted
25 Purchase 150 10.3 if issues are priced at
stock at the end of October
29 Issue (0) to state the value of closing
100
average method.
Ans. FIFO LIFO
Ans. FIFO Weighted
Rs. Average Method
Rs. Method
Consumption value 6,968 7,046 Rs. 33,000
Rs. 30,000
Value of closing stock 2,874] Value of Stock (2,000Rs. 15)]
2,952 (2,000 Rs. 16.50) 2002
rage"
Set up a Stores Ledger" form and enter the following transactions adopting the "weighted avetug in a factory during February,
history of the receipts and
issues of materials
method of pricing out issues
n e Tollowing is a
500 Quintals Rs. 25
2001 Feb. 1 Opening Balance
70
August 1 Opening balance 50 units @ Rs. 3 per unit. "3 Issue
 Methods of Valuing Material Issues or Material. 1e Material Issues
11-88
100
Materials Costing M e t h o o

(a)
or

The closing balances should be

Materials Costing
4 Issue terial costs charged to closely related t
80 (b) The II-89
accordingproduction
Issue sld be
be issued prices
200 @Rs. 24.50 Material
should
to FIEO
should
Ould be cloe
Received from vendor
15
15. [(a) 8.25 : (6) Material should
rding to FIFO
method, closely related to the
Rs. 244 Rs. sued according to LIFOValue of
14 Refund of surplus from a work order
180 200 units
200 unt
Rs. 7.50]
method,Stock Rs. 1,650current
i.e.
prices.
16 Issue ehes the follo
following store
furnishes Value of Stock 200 units
Received from vendor
240 Rs. 24.375 30. A Ltd.
1-9-97 Opening balance transactions for
Rs.
September, 1997:
1,500 i.e.
304
Issue 320
4-9-97 Issues Req. No. 85
Received from vendor @Rs. 24.315 6-9-97 Receipts from B & Co.
25 Units, value Rs. 162.50
112 G.R.N. No. 26
Issue 8 Units

27 Refund of surplus from a work order 2

Rs. 24.50 7-9-97 Issues Req. No. 97 50 Units @ Rs. 5.75
100 Rs. 25
28 Received from vendor 10-9-97 Returns to B & Co. per unit
Issues are to be priced on the principle of irst-n-First-out
The
stock verifier of + 12-9-97 Issues Req. No. 108 12 Units
of 5 quintals and on 27th another shortage of factoy 10 Units
noted that on 15th he had found a shortage 13-9-97 Issues Req. No. 110
Account in respect of the above materials 15 Units
Write on the complete Stores Ledger 15-9-97 Receipts from M & Co.
96 @ Rs. 24.375 +320 quintals @ R. a . 20 Units
Ans. Value of stock Rs. 12,914-80 (i.e. quintals G.R.N. No. 33
Rs. 25]
quintals Rs. 24.50+100 quintals concern reveals the followinc 17-9-97 IssuesReq. No. 121 25 Units @ Rs. 6.10
per unit
X in a manuracturing
The Stock-Ledger Account for material 19-9-97 Received replacement from B & Co. 10 Units
2001
the quarter ended September 30, G.R. N. No. 38
Issues
Receipts 20-9-97 Returned irom department amaterial
terial 10 Units
Quantity Price Quantity Amount of B & Co. M.R.R N
No.
Units RS. Units Rs. 22-9-97 Transfer from Job 182 to Job 187 in 5 Units
June 1 Balance b/d 1,600 2.00 the Deptt.; M.T.R. No. 6
3,000 2.20 26-9-97 Issues Req. No. 146 5 Units
June 9
1,200 2,556 29-9-97 Transfer from Deptt. "A" to Dept. 10 Units
July 13
5 900 1,917 "B"; M.T.R. No. 10
August 5 Units
August 17 3,600 2.40 30-9-97 Shortage in stocktaking
2 Units
August 24 ,800 4,122 Write up the priced Stores Ledger on FIFO method.
September 11 2,500 2.50 ns. [Value of stock Rs. 167.30 (1Le. 18 units ( Rs. 6.10 per unit + 10 units @ Rs. 5.75 per unit]
September 27 2,100 4,971 Notes: (1) The material received as replacement from supplier is to be treated as fresh supply.
September 29 700 1,656 (2) The entries for transfer of material from one job and department to the other are book
Physical verification on September 30, 2001 revealed an actual stock of 3,800 units. You a the of respective jobs and as such should not be shown in
the Stores Ledger Account.
entries for adjusting cost
required to:
(a) Indicate the method of pricing employed in the above. 31 The Stores Ledger Account of a manufacturing company reveal the following entries of a particular
(6) Complete the above account by making entries you would consider necessary including material.
adjustments, if any, and giving explanations for such adjustments.
Receipts Issue
Ans. fa) Weighted A verage Method; (b) Value of Shortage on September 30, 2001 = Rs. 473 i.e. 200
Date
units @ Rs. 2.37; Value of Closing Stock = Rs. 8,995 i.e. 3,800 units Rs. 2.37 per unit] Quantity Rate Amoun Quantity Issue Amount

price Rs. Rs.

The Stores Ledger Account
of C material in
the book of Chemical Process Ltd. revealed the
following transactions for the month of November, 2001: 2002
n
units Rs. Rs._ units
2001 January 2 4,000 1. 80 7,200
Nov. Opening stock 200 kgs. @ Rs. 7.50 per kg. 2,000 1.75 3,500
10,000 19,500
Received from Supplier S, 400 kgs. Rs. 7.75 18
per kg. (G.R.N. No. 448) 5,000 9,750
Issued to Production Department 240 February 3
kgs. (S.R. No. 883) 14 3,000 1.85 5,550
Issued to Production Department 160
12
kgs. (S.R. No. 897) 18 3,000 I. 90 5,700 19,200
Received from supplier
S2 500 kgs. Rs. 7.90 per kg. (G.R.N. No. 455) 20 10,000
15 Issued to Production
Department 400 kgs. (S.R. No. 912) 1-1-2002 was 20,000 units valued at Rs. 40,000. Closing
stock as per
16 Received from Supplier S3 250 pCnn8 stock as on
kgs. Rs. 8.00 per kg. (G.R.N. No. 461)
pnysical verification 28-2-2002 was 6,950 units.
on
19 Received from Supplier S, 600 kgs. @Rs. 8.25 have been adopted
for
the issue
per kg. (G.R.N. No. 469) which you consider to
method of pricing the issue
21 Issued to Production Department 350 ,OTK Out the to 2 places of decimal). Complete
kgs. (S.R. No. 946) issue rates (correct
material and show the working of the as on 28-2-2002
on the basis
24 Issued to Production Department 260 C work out the value of
the closing stock
" 27 kgs. (S.R. No. 959) t
Or
the material and
Issued to Production Department 340 of
of valuation adopted. stock Rs. 13,404
kgs. (S.R. No. 974) Value of closing
(G.R.N. denotes Goods Received Note and S.R. denotes Stores has been followed.
method of pricing issues
You are required to Requisition) dverage
price the issues and draw out the closing bal ances in the form L.e. 6,950 units valued R s . 1.92 per unit
Ledger Account under the pricing method suitable for the following two alternatives
II-90 Methods of Valuing Material Issues or Materials Costing
A manufacturer of Surat purchased three chemicals A, B and C from Mumbai. The invoice
gave the
following information
ChemicalA: 3,000 kgs. Rs. 4.20 per kg.
Rs.
Chemical B: 5,000 kgs. Rs. 3.80 per kg. 12,600
Chemical C: 2,000 kgs. Rs. 4.75 per kg. 19,000
Sales Tax 9,500
2,055
Railway Freight
Total Cos 1,000
44,155
A shortage of 200 kgs. in Chemical A, of 280 kgs. in Chemical B and of 100
kgs. in Chemical c
was noticed due to breakages. At Surat, the manufacturer paid octroi duty @ Re. 0-10
per kg. He aleo
paid cartage Rs. 22 for Chemical A, Rs. 63.12 for Chemical B and Rs. 31.80 for Chemical c
Calculate the stock rate that you would suggest for pricing issue of chemicals
of 5% towards further deterioration. assuming provision
a

Ans. [Stock Rate per kg. Chemical A Rs. 5.20; Chemical B Rs. 4.68; Chemical C Rs. (C.A. Inter)
5.761.
33. From the following particulars work out the issue rate per 1,000 each of first class
and second class
bricks:
() Paid for supply at the kiln site for 30 lakhs first class bricks Rs. 30 per 1.000:
(b) Paid for supply at the kiln site for 60 lakhs second class bricks Rs. 25 per 1,000:
(c) Paid cariage charges for carrying all bricks from kiln to store yard Rs. 1-50
(d) Paid unloading charges Rs. 90 (lump sum) per 1,000.
(e) Paid for stacking in the store yard Rs. 180 (lump sump).
(Breakage in handling: 1% for first class bricks, 2% for second class bricks.
Ans. [First Class Bricks: Rs. 31-85; Second Class Bricks Rs. 2707] (I.C. W.A., Inter)