Indian Oil is a bulk distributor of high octane petrol. A periodic inventory of petrol at hand is made when the books are closed at the end of each month. The following summary of information is available for the month of June.
|
Sales |
Rs 9,45,000 |
|
General administration cost |
Rs 25,000 |
|
Opening stock: 1,00,000 l at Rs 3 per litre |
Rs 3,00,000 |
|
Purchases (including freight inwards): |
|
|
1 June |
2,00,000 l at Rs 2.85 per litre |
|
30 June |
1,00,000 l at Rs 3.03 per litre |
|
30 June |
Closing stock is 1,30,000 l |
Compute the following data by the weighted average method of inventory costing:
- Value of inventory on 30 June
- Amount of the cost of goods sold in June
- Profit or loss for June
Weighted average method: