Storekeeeping WASSCE (SC), 2021

Question 6

 

 

Azuka, a building materials merchant made the following transactions.
Purchases:
January 1, 2019:                      2,000 units at N10 per unit                                            

January 20, 2019:                    1,500 units at N12 per unit
April 4, 2019:                          3,000 units at N15 per unit

Sales were made as follows:
January 8, 2019:                      800 units
January 22, 2019:                    1,000 units
February 20, 2019:                  600 units
April 15, 2019:                        2,000 units

You are required to prepare a store ledger control account using First-in, First-out (FIFO) method to determine the:

(a). value of material sold;

(b). number and value of closing stock at the end of April, 2019.

Observation

 

Many candidates attempted this question and performed brilliantly. Candidates gained highest marks from this question. However, the only mistake candidates made was leaving out the title of the account which is - Store Ledger Control Account Using FIFO Method As At 30th April, 2019.

 

The responses expected from candidates are:


Store Ledger Control Account Using FIFO Method As At 30th April, 2019

 


Date

Receipts

Issues

Balance

Quantity (Units)

Rate (N)

Value
(N)

Quantity (Units)

Rate (N)

Value
(N)

Quantity (Units)

Value
(N)

January 1

2,000

10.00

20,000

-

-

-

2,000

20,000

January 8

-

-

-

800

10.00

8,000

1,200

12,000

January 20

1,500

12.00

18,000

-

-

-

2,700

30,000

January 22

-

-

-

1,000

10.00

10,000

1,700

20,000

February 20

-

-

-

200

10.00

2,000

1,500

18,000

February 20

 

 

 

400

12.00

4,800

1,100

13,200

April 4

3,000

15.00

45,000

-

-

-

4,100

58,200

April 15

-

-

-

1,100

12.00

13,200

3,000

45,000

April 15

-

-

-

  900

15.00

13,500

2,100

31,500

 

 

 

 

 

 

51,500

 

 

                                                                                                                                               

(a). Value of material sold            =          N 51,500

(b). Units and value of closing stock:

=          2,100 units at N31,500