while preparing final accounts on dec 31 2008 the company had 1 200 kg of raw materi 563218

Aug 29, 2021 | Uncategorized

Renu Ltd started on Jan 1, 2008, purchased raw materials during 2008 as stated below:

Rate per kg Rs

Jan 5

750 kg

51

Jan 25

1,200 kg

49

Feb 20

2,300 kg

47

Mar 15

2,500 kg

48

Oct 2

1,250 kg

50

Dec 10

1,000 kg

55

While preparing final accounts on Dec 31, 2008, the company had 1,200 kg of raw materials in its godown. You are required to compute the values of Closing Stock of raw materials and the Cost of Sales according to:

  1. First In First Out (FIFO) Basis,
  2. Last In First Out (LIFO) Basis, and
  3. Weighted Average Price (WAP) Basis.