X Ltd takes a periodic inventory of the stocks of material AA’ at the end of each month. The physical inventory taken on 31 December shows a balance of 2000 kg of material AA’ in hand @ Rs. 5.50 per kg.
The following purchases were made during January:
|
2 January |
28,000 kg @ Rs. 5.75 |
|
9 January |
25,000 kg @ Rs. 5.80 |
|
16 January |
35,000 kg @ Rs. 5.85 |
|
23 January |
10,000 kg @ Rs. 5.90 |
A physical inventory on 31 January discloses that there is a stock of 15,000 kg.
You are required to compute the inventory value on 31 January, by each of the following methods alternatively:
- FIFO method
- LIFO method
- Average cost method