Store Management WASSCE (SC), 2022

Question 6

 

  1. Eghosa started a business in April, selling maize.

    The following are the details of his purchases and sales:
    April                                                                            N
    4th        purchases 100 bags @                                    1,000 each
    5th        purchased 150 bags @                                    1,100 each
    8th        sold 80 bags
    13th      sold 90 bags
    20th      purchased 70 bags @                                      1,200 each
    22nd     sold 50 bags
    25th      sold 60 bags
    28th      purchased 90 bags @                                      1,250 each
    30th      sold 50 bags

    You are required to prepare a store ledger using FIFO method of pricing to show:

    (a)Cost of goods sold;

    (b)Value of closing stock.

  2. STORE LEDGER USING FIFO METHOD

    DATE

    RECEIPTS

    ISSUE

    BALANCE

     

    QTY

    PRICE

    VALUE

    QTY

    PRICE

    VALUE

    QTY

    VALUE

     

     

    N

    N

     

    N

    N

     

    N

    4/4

    100

    1,000

    100,000

    -

    -

    -

    100

    100,000

    5/4

    150

    1,100

    165,000

    -

    -

    -

    250

    265,000

    8/4

    -

    -

    -

    80

    1,000

    80,000

    170

    185,000

    13/4

    -

    -

    -

    20

    1,000

    20,000

    150

    165,000

     

     

     

     

    70

    1,100

    77,000

    80

    88,000

    20/4

    70

    1,200

    84,000

    -

    -

    -

    150

    172,000

    22/4

    -

    -

    -

    50

    1,100

    55,000

    100

    117,000

    25/4

    -

    -

    -

    30

    1,100

    33,000

    70

    84,000

     

     

     

     

    30

    1,200

    36,000

    40

    48,000

    28/4

    90

    1,250

    112,500

    -

    -

    -

    130

    160,500

    30/4

    -

    -

    -

    40

    1,200

    48,000

    90

    112,500

     

    -

    -

    -

    10

    1,250

    12,500

    80

    100,000

    Total

    410

     

    461,500

    330

     

    361,500

     

     

    1. Cost of goods sold = N 361, 500
    2. Value of closing stock = N 100, 000

     

Observation

 

  1. Candidates’ performance was okay. Most of them were not able to apply the principles of FIFO valuation method and getting the closing stock.