Question

1. Calculate the Ending inventory from the following information using FIFO, WEIGHTED AVERAGE methods of Material issues:

The details relating to the purchase and sales of Material X is given below. Calculate the Ending inventory and Cost of goods sold for the Material X:

Date	PARTICULARS	OMR
1.1.2014	Opening stock of Material X 250 units at	1.200
5.1.2014	Purchased 350 units of Material X at	1.275
7.12014	Purchased 425 units of Material X at	1.340
10.1.2014	Sold 800 units
12.1.2014	Purchased 550 units of Material X at	1.425
15.1.2014	Sold 620 units	1.500
20.1.2014	Sold 120 units

Answer 1

Date	Particulars	Unit	Price	Amount
1.1.2014	Opening Stock	250	1.200	300.00
5.1.2014	Purchased	350	1.275	446.25
7.1.2014	Purchased	425	1.340	569.50
10.1.2014	Sold	800
12.1.2014	Purchased	550	1.425	783.75
15.1.2014	Sold	620
20.1.2014	Sold	120
Closing Inventory		35
FIFO Method
Note: Closing inventory is 35 units (250+350+425-800+550-620-120)
the same is clearly remaining from the units purchased on 12.1.2014
therefore the rate is used 1.425 for valuing ending inventory from FIFO method
and the value from FIFO method is 49.88
COGS from FIFO is 2049.63 (Total purchase less ending inventory value i.e. 2099.50 less 49.88)
WAC Method
WAC of the material is = (Opening inventory value + Purchase Value)/ (Opening unit + Purchase Unit)
=	(300+446.25+569.50+783.75)/(250+350+425+550)
=	1.333
therefore Closing inventory from WAC method is 46.66 (1.333*35)
COGS from WAC is 2052.84 (Total purchase less ending inventory value i.e. 2099.50 less 46.66)