The following transactions in respect of Material Y occurred during the six months ended 30th June 2007.
|
Month |
Purchased [Units] |
Price Per Unit Rs. |
Issued [Units] |
|
January |
200 |
25 |
Nil |
|
February |
300 |
24 |
250 |
|
March |
425 |
26 |
300 |
|
April |
475 |
23 |
550 |
|
May |
500 |
25 |
800 |
|
June |
600 |
20 |
400 |
Required: The Chief Accountant argues that the value of closing stock remains the same, no matter which method of pricing of material issues is used. Do you agree? Why or why not? Detailed Stores Ledgers are not required.