ANUJ KUMAR SINGH +919899600701

CHAPTER 2
Materials
Q1 From the following particulars, find Economic Order Quantity
(E.O.Q.):
Annual Demand = 3,200 units, Unit Cost = ` 6, Cost of Carrying Inventory
= 25% p.a., Cost of one procurement = ` 150. [B. Com. (Pass) Delhi 2000]
Solution :
Computation of Economic Order Quantity

Where : Q = Economic Order Quanity

S = Storage or Carrying cost per unit per annum
P = Cost of Placing an order

Q.2 A firm is able to obtain quantity discounts on its orders of material as

follows:
Price Tonnes Price Tonnes
per tonne per tonne
` 6.00 Less than 250 ` 5.70 2,000 and less than
` 5.90 250 and less than 800 4.000
` 5.80 800 and less than 2,000 ` 5.60 4,000 and over.
The annual demand for the material is 4,000 tonnes. Stock holding costs
are 20% of material cost per annum. The delivery cost per order is ` 6.
You are required to calculate the best quantity to order.
 ANUJ KUMAR SINGH +919899600701

Solution :

Note. It has been assumed that management will order for 4,000 units and
request for staggering the delivery in lots of 207 tonnes and thus get the
material at ` 5.60 per tonne.
In case it is presumed that staggering of delivery will not be possible, the
best quantity to order can be ascertained by using this Tabular Method :
Orderin Price Per Cost of Cost of Cost of Total
g
Quantity tonne Purchase Stock holding Order
` ` ` ` `
200 x 6 x 20 4,000
200 6 4,000 x 6 2 x100 200 x 6
= 24,000 = 120 = 120 24,240.0
0

250 5.9 4,000 x 5.9 250 x 5.9 x 4,000/250

20/2x100 x6

= 23,600 = 147.50 = 96 23,843.

50
800 5.8 4,000 x 5.8 800 x 5.8 x 4,000/800
20/2x100 x6
= 23,200 = 464 = 30 23,694.
00
2,000 5.7 4,000 x 5.7 2,000x5.7x20/2 4,000/2,00
x100 0x6
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= 22.800 = 1.140 = 12 23,952.

00
4,000 5.6 4,000 x 5.6 4,000 x 5.6 x 4,000/4,00
20/2 x 100 0x6

= 22.400 = 2,240 =6 24,646.

00
The above table shows that least cost is ` 23,694 when the order quantity
is 800 units. Hence, it is the optimum ordering quantity.
Q3. Find out Re-order Quantity if consumption is 70-100 units per day,
delivery period is 2-6 days and maximum level is 810 units. [B.Com.
(Pass) Delhi, 1997]
Solution :
Re-order Quantity = x
Re-order Maximum Level = Re-order Level + Re-order Quantity -
(Minimum
Consumption x Minimum Re-order Period)
810 =600 + x-(70x2)
= 600 + x-140
-x =-810 + 600-140
= 350 units.
Q4 Calculate the Maximum Stock Level from the following :
EOQ—300 units
Usage Rate—25 to 75 units per week
Recorder Rate—4 to 6 weeks. [B.Com (Pass) Delhi, 2002]
Solution :
Maximum Stock Level =
Re-order Level + Re-order Qty. - (Minimum consumption Minimum
Recorder Period)
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Re-order Level = Maximum Consumption x Maximum Re-order Period

= 75 Units x 6 weeks
= 450 Units.
Hence,
Maximum Stock Level = 450 + 300 - (25 x 4)
= 750-100 = 650 Units:
Q5. The following information is available in respect of material No. 30 :
Re-order quantity = 1,500 units
Re-order period = 4 to 6 weeks
Maximum consumption = 400 units per week
Normal consumption = 300 units per week
Minimum consumption = 250 units per week
Calculate :
(a) Re-order level;
(b) Minimum level;
(c) Maximum level; and
(d) Average stock level. [B. Com. (Pass) Delhi]
Solution :
(a) Re-order level = Maxmimum consumption x Maximum re-order
period
= 400 x 6 = 2,400 units.
(b) Minimum level = Record level - (Normal consumption x Average re-
order period)
= 2,400 - (300 x 5)
= 2,400-1,500 = 900 units.
(c) Maximum level = Re-order level + Re-order quantity - (Minimum
consumption x Minimum re-order period)
= 2,400+1,500-(250x4)
= 3,900-1,000 = 2,900 units.
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(d) Average stock level = 1/2 (Minimum level + Maximum level)

= 1/2 (900 + 2,900)
= 3,800/2 = 1,900 units.
Q 6 Two components, A and B are used as follows :
Normal usage 50 units per week each
Minimum usage 25 units per week each
Maximum usage 75 units per week each
Re-order quantity A : 300 units
B: 500 units
Re-order period A : 4 to 6 Weeks
B : 2 to 4 Weeks
Calculate for each component:
(a) Re-order level.
(b) Minimum level.
(c) Maximum level.
(d) Average stock level.
Solution :
Re-order Level = Maximum re-order period x Maximum usage
Component A : 6 x 75 = 450 units
B : 4 x 75 = 300 units
Minimum Level
= Re-order level - (average rate of consumption x average time required
to obtain
fresh delivery)
Component: A 450 - (50 x 5) = 200 units
B 300-(50x3) =150 units
Maxmimum Level
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= Re-oreder level + Re-order quantity - (Minimum consumption x

Minimum re-
order period)
Component : A : 450 + 300 - (25 x 4) = 650 units
B : 300 + 500 - (25 x 2) = 750 units
Average Stock Level
= Minimum stock level + 1/2 Re-order quantity
Component: A ' : 200+ (1/2x300) = 350 units
: 150+ (1/2x500) = 400 units.
Q 7 A company uses 2500 units of a material per month. Cost of placing
an order is ` 150. The cost per unit is ` 20. The re-order period is 4 to 8
weeks. The minimum consumptions of raw materials are 100 units
whereas the average consumptions are 275 units. The carrying cost of
inventory is 20% per annum.
Calculate:
(1) Re-order quantity and
(2) Re-order level. [B.Com. (Pass), Delhi 2009]
Solution :

Where : E = Re-ordering Quantity

U = Annual Consumption
P = Cost of Placing Order
5 = Carrying Cost per unit

= 1,500 units
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(2) Re-order level = Maximum Reorder Period x Maximum Usage

= 8 weeks x 450
= 3,600 units
Working Notes:
Maximum Usage = (Average Consumption x 2) - Minimum Consumption
= 275x2-100
= 550-100 = 450 units
Q 8 Medical Aids Co. manufactures a special product A. The following
particulars were collected for the year 2009 :
Cost of placing an order ` 100
Annual carrying cost per unit ` 15
Normal usage 50 units per week
Minimum usage 25 units per week
Maximum usage 75 units per week
Re-order period 4 to 6 weeks
Compute from the above :
(i) Re-order Quantity; (ii) Re-order Level; (iii) Minimum Level; (iv)
Maximum Level; (v) Average Stock Level. (Weeks in a year 52) [B.Com.
(Pass), Delhi 2011]
Solution :
(i) Re-order quantity (of units used) =

Where
U = Annual demand of input units
P = Cost of placing an order
S = Annual carrying cost per unit
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= 186 units (approx.)

(ii) Re-order Level = Maximum Re-order Period x Maximum Usage
= 6 weeks x 75 units = 450 units
(iii) Minimum Level = Re-order Level - (Normal Usage x Average Re-
order Period)
= 450 units - (50 units x 5 weeks)
= 450 units - 250 units = 200 units
(iv) Maximum Level = Re-order Level - (Min. Usage x Min. Re-order
Period)
+ Re-Order Quantity
= 450 units - (25 units x 4 weeks) + 186 units = 536 units
(v) Average Stock Level = 1/2 (Minimum Stock Level + Maximum Stock
Level)
= 1/2 (200 units + 536 units) = 368 units
Working Note:
U = Annual demand of input units for 12,000 units of 'A'
= 52 weeks x Normal usage of input units per week
=52 weeks x 50 units of input per week = 2,600 units
Q9 . From the following information, calculate economic order quantity
and the number of orders to be placed in one quarter of the year for product
X:
(i) Quarterly consumption of material 2,000 kg.
(ii) Cost of placing one order ` 50
(iii) Cost per unit ` 40
(iv) Storage and carrying cost 80% on average inventory
[B.Com. (Pass), Delhi 2012]
Solution :
Calculation of Economic order quantity.
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Where : EOQ = Economic Order Quantity

U = Annual Consumption
P =Cost of placing an order
S = Storage cost per unit per annum

= 158.11 Units or 159 Units .

No. of orders to be placed in one year :
Total quantity required per year/Economic ordering quantity = 8,000/159
= 50.31 or 50 orders per year
No. of orders to be placed in one quarter :
Total quantity required per quarter/Economic ordering quantity =
2,000/159 = 12.5 or 13 orders per quarter
Q10 In manufacturing its products, a company uses three raw-materials,
A, B and C in respect of which the following apply—
Usage
per
Raw- unit of Re-order Rate Delivery Order Minimum
Material product quantity per lb. period level level
(lb) (lb) (Paise) (weeks) (lb) (lb)
A 10 10,000 10 1 to 3 8,000
B 4 5,000 30 3 to 5 4,750
C 6 10,000 15 2 to 4 2,000
Weekly production varies from 175 to 225 units, averaging 200. What
would you expect the quantities of the following to be :
(a) Minimum stock of A.
(b) Maximum stock of B.
(c) Re-order level of C, and
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(d) Average stock level of A ?

[Ans. (a) 4,000 lbs., (b) 7,650 lbs., (c) 5,400 lbs. (d) (i) 9,000 lbs. (ii)
10,125 lbs.]
Q11 The following data pertain to material X:
Supply period 4 to 8 months
Consumption rate:
Maximum 600 units per month
Minimum 100 units per month
Normal 300 units per month
Yearly 3,600 units
Storage costs are 5% of stock value.
Ordering Costs are B 400 per order.
Price per unit of material `64.
Calculate:
(i)Re-order level;
(iii) Minimum stock level;
(iii) Maximum stock level; and
(iv) Average stock level. [B. Com. (Pass) Delhi, 1999]
[Ans. (i)4,800 units; (ii) 3,000 units; (iii) 4,700 units (iv) 3,150 or 3,850
units.]
Q 12 In manufacturing its product Z, a company uses two types of raw
materials A and B in respect of which the following information is
supplied :
One unit of Z requires 10 kg. of A and 4 kg. of B materials. Price per kg.
of A material is ` 10 and that of B is ` 20. Re-order quantities of A and B
materials are 10,000 kg. and 5,000 kg. Re-order levels of A and B
materials are 8,000 kg. and 4,750 kg. respectively. Weekly production
varies from 175 units to 225 units averaging 200 units. Delivery period of
A material is 1 to 3 weeks and B material 3 to 5 weeks.
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Compute :
(i)Minimum Stock level of A.
(ii) Maximum Stock level of B. [B. Com. (Pass) Delhi, 1987]
[Ans. (i) 4,000 Kgs., (ii) 7,650 Kgs.]
Q 13 From the following particulars find out the Economic Order
Quantity :
(i) Annual Demand 12,000 units
(ii) Ordering Cost ` 90 Per order
(iii) Inventory Carrying Cost per annum ` 15
/ [Ans. 379 units (approx.)]
Q 14 What do you understand by Economic Order Quantity ? Find out the
EOQ from the following particulars: . " '
Annual usage ` 1,60.000 @ ` 40 per unit: Cost of placing and receiving
one order ` 200: Annual carrying cost: 25% of inventory value. , . [B.
Com. (Pass) Delhi, 1993]
[Ans. 400 units]
Q 15 From the following information, calculate Re-order quantity :
Maximum Re-order Period 8 weeks
Average Stock . 400 units
Average Usage 50 units per week
Maximum Usage 80 units per week
Average Re-order Period 6 weeks
[B. Com. (Pass) Delhi, 2010] [Ans. 640 units]
Q 16 Calculate Economic Order Quantity from the following information
:
Annual Consumption 1,00,000 units
Ordering Cost ` 50 per order
Carrying Cost 8% of Average Stock
Per Unit Cost ` 20
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[B. Com. (Pass) Delhi, 1995]

[Ans. 2500 units]
Q 17 A manufacturer buys certain equipment from outside suppliers at `
30 per unit. Total annual needs are 800 units.
The following further data are available :
Annual return on investment 10%
Rent, taxes, insurance per unit, per year Re. 1
Cost of placing an order ` 100
Determine the economic order quantity.
[Ans. 200 units.]
Q18. After inviting tenders, two quotations are received as under:
Supplier A—` 2.20 per unit.
Supplier B—` 2.10 per unit + ` 2,000 fixed charges irrespective of units
ordered.
(i) Calculate the order quantity for which the purchase price per unit will
be the same.
(ii) Select the supplier if the purchase officer wants to place an order for
15,000 units.
[Ans. (i) 20,000; (ii) A.]
Q 19. From the following information relating to a type of raw material,
calculate EOQ :
Monthly demand 200 units
Unit price `5
Order cost per order ` 12
Storage costs 2% p.a.
Interest rate 10% p.a.
[B. Com. (Pass) Delhi, 2007]
[Ans. 310 units]
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Q.20 . The following is the record of receipt of certain materials during

the month of Feb., 2000:
Feb. 1 Received 400 units for job No. 12 @ ` 10 per unit.
Feb. 4 Received 300 units for job No. 13 @ ` 11 per unit.
Feb. 16 Received 200 units for job No. 14 @ ` 12 per unit.
Feb. 25 Received 400 units for job No. 15 @ ` 13 per unit.
During February, 2000 following issues of materials are made :
Feb. 10 Issued 200 units to Job No. 12.
Feb. 15 Issued 100 units to Job No. 13.
Feb. 17 Issued 200 units to Job No. 12.
Feb. 20 Issued 200 units to Job No. 14.
Feb. 26 Issued 100 units to Job No. 13.
Feb. 28 Issued 200 units to Job No. 15.
Show how these transactions will appear in the Stores Ledger.
(For solution please see the table on next page)
Solution
(Illustration 2.15) :
STORES LEDGER
Receipts Issues Balance
Date Job Qty Rat Amou Date Job Qty Du Rat Amo Quan Amo
. e nt . e e unt tity unt
No. ` ` No. ` ` `
2000 2000
Feb. 1 12 400 10 4,000 400 4,000
4 13 300 11 3,300 700 7,300
10 12 200 200 10 2,000 500 5,300
15 13 100 200 11 1,100 400 4.200
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16 14 200 12 2,400 600 6,600

17 12 200 10 2,000 400 4,600
20 14 200 12 2,400 200 2,200
25 15 400 13 5,200 600 7,400
26 13 100 100 11 1,100 500 6,300
28 15 200 200 13 2,600 300 3,700
*
Total 1,3 14,90 1,0 11,20 300 3,700
00 0 00 0
*This consists of—
100 units for Job No. 13 @ ` 11 per unit 1,100
200 units for Job No. 15 @ ` 13 per unit 2,600
300 units ` 3,700
charge for materials because the first job completely exhausted the supply
of materials of a particular lot.
(iii) The system will be most unsuitable in times of rising or falling prices.
When prices are rising the cost of replenishment of stock will be higher
than the price of issue which means that production is relatively
undercharged. Reverse will be the case when the prices of materials are
falling. Production will be overcharged which may result in losing of
prospective sales because quotations are too high.
Q21 From the following information prepare Store Ledger Account as
per LIFO and FIFO method :
Jan. 1,2003 Received 1,000 Units @ Re. 1 per unit
Jan. 10,2003 Receved 260 Units @ ` 1.05 per unit
Jan. 20, 2003 Issued 700 Units
Jan. 21,2003 Received 400 Units @ ` 1.15 per unit
Jan. 22, 2003 Received 300 Units @ ` 1.25 per unit
 ANUJ KUMAR SINGH +919899600701

Jan. 23, 2003 Issued 620 Units

Jan. 24, 2003 Issued 240 Units
Jan. 25, 2003 Received 500 Units @ ` 1.10 per unit
Jan. 26, 2003 Issued 380 Units
[B. Com. (Pass), Delhi 2005]
Solution :
(i) STORES LEDGER
(LIFO Method)
Date Receipts Issu Balance
es
2003 Qty. Rate Amou Qty. Rate Amou Qty. Rate Amoun
nt nt t
Jan. 1 1,000 1.00 1,000 — — — 1,000 1.00 1,000
10 260 1.05 273 — — — 1,000 1.00 1,273
260 1.05
20 — — — 260 1.05 273 560 1.00 560
440 1.00 440
21 400 1.15 460 — — — 560 1.00 1,020
400 1.15 1,020
22 300 1.25 375 — — — 560 1.00 1,395
400 1.15
300 1.25
23 — — — 300 1.25 375 560 1.00 652
320 1.15 368 80 1.15
24 — — — 80 1.15 92 400 1.00 400
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160 1.00 160

25 500 1.10 550 —: — — 400 1.00 950
500 1.10
26 — 380 1.10 418 400 1.00 532
120 1.10
(ii) STORES LEDGER
(FIFO Method)
Date Receipts Issu Balance
es
2003 Qty. Rate Amou Qty. Rate Amou Qty. Rate Amoun
nt nt t
Jan. 1 1,000 1.00 1,000 — — — 1,000 1,00 1,000
0
10 260 1.05 273 — — — 1,000 1.00 1,273
260 1.05
20 — — — 700 1.00 700 300 1.00 573
260 1.05
21 400 1.15 460 — — — 300 1.00 1,033
260 1.05
400 1.15
22 300 1.25 375 — — — 300 l.00 1,408
260 1.05
400 1.15
300 1.25
23 — — — 300-1 1.00 300 340 1.15 766
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260 1.05 273 300 1.25

60 J 1.15 69
24 — — — 240 1.15 276 100 1.15 490
360 1.25
25 500 1.10 550 — — — 100 1.15 1,040
300 1.25
500 1.10
26 — — — 1001 1.15 115 20 1.25 575
280 1.25 350 500 1.10
Q22 . From the following particulars, prepare Stores Ledger Account by
using
Last-in-First Out (LIFO) Method :
April 1 Stock in hand 500 units at ` 20 per unit April 6 Issued 300 units
April 3 Issued 200 units April 6 Returned to store 10 units
April 3 Purchased 150 units at ` 22 per unit (issued on 4th April)
April 4 Issued 100 units April 7 Issued 100 units
April 5 Purchased 200 units at ` 25 per unit April 8 Issued 50 units
On 10th April, it was noticed that there is a shortage of 10 units.
[B.Com. (Pass), Delhi 2000]
Solution: STORES LEDGER
(LIFO Method)
Date Receipts Issu Balance
es
June, Qty. Rate Amou Qty. Rate Amou Qty. Rate Amount
2000 nt nt
April 1 — — — — — 500 20 10,000
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3 — — — 200 20 400 300 20 6,000

3 150 22 3,300 — — — 300 20
150 22 9,300
4 — - — 100 22 2,200 300 20
50 22 7,100
5 200 25 5,000 — — — 300 20
50 22 12,100
200 25
6 — — — 200 25 5,000
50 22 1,100 250 20 5,000
50 22 1,000
7 10 22 220 — — — 250 20
(Retd.) 10 22 5,220
8 — — — 10 22 220
90 20 1,800 160 20 3,200
9 —' — — 50 20 1,000 110 20 2,200
10 10 20 200 100 20 2,000
(Shor
t-
age)
Q 23 The following purchases and issues of tin were made during the
month of May 2000 :
Received
Date Quantity Unit Cost Amount
1-5-2000 150 1.50 225
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10-5-2000 450 1.60 720

25-5-2000 600 1.70 1,020
Issued
Date Quantity
12-5-2000 120
18-5-2000 225
28-5-2000 350
There was no "opening stock". Compute the inventory value on 31st May,
1995 by LIFO Method.
[Ans. 505 units of` 818.]
Q 24 A manufacturer who has newly set up the factory used cost price as
the basis for charging out materials to jobs. The receipts side of the stores
ledger account shows the following particulars :
500 articles bought at ` 3.00 each.
700 articles bought at` 3.10 each.
400 articles bought at ` 3.20 each.
800 articles bought at` 3.10 each.
Successive issues were made of 300, 1,000 and 200 articles.
(a) At what price per article should each of these issues be charged under
FIFO Method ?
(b) Discuss briefly the different methods of charging put the materials
issued to job.
[Ans. (a) Stock 900 units of ` 2,800.]
Q 25 Explain the following two methods of pricing of material issues and
also the circumstances under which these methods are used.
LIFO
FIFO
Draw a stores ledger card recording the following transactions that took
 ANUJ KUMAR SINGH +919899600701

place in a month under the above two methods :

2000
1st Jan. Opening stock 200 pieces @ ` 2 each
5th Jan. Purchases 100 pieces®` 2.20 each
10th Jan. Purchases 150 pieces®` 2.40 each
20th Jan. Purchases 180 pieces®` 2.50 each
2nd Jan. Issues 150 pieces
7th Jan. Issues 100 pieces
12th Jan. Issues 100 pieces
28th Jan. Issues 200 pieces
[Ans. Stock LIFO 80 units of ` 172 and FIFO 80 units of` 200.]
Q26 Prepare a Stores Ledger Account from the following transactions
assuming that the issue of stores have been priced on the principle of "last-
in-first-out" :
Jan. 1 Received 1,000 units as ` 20 per unit
Jan. 10 Received 260 units as ` 21 per unit
Jan. 20 Issued 700 units
Feb. 4 Received 400 units as ` 23 per unit
Feb. 21 Received 300 units as ` 25 per unit
Mar. 16 Issued 620 units
Apl. 12 Issued 240 units
May 10 Received 500 units at ` 22 per unit
May 25 Issued 380 units
[Ans. Stock UFO 520 units of` 10,640 and FIFO 520 units of` 11,500.]
Q27 . The following transactions took place in respect of a material item
:
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Receipts Rate Issue

Quantity ? Quantity
2-3-2000 200 2.00
10-3-2000 300 2.40
15-3-2000 250
18-3-2000 250 2.60
20-3-2000 200
Prepare a priced Ledger Sheet, pricing the issues at—
(a) Simple average rate :
(b) Weighted average rate. [B. Com. (Pass) Delhi, 2003 adapted]
[Ans. Stock (a) 300 units of` 720, (b) 300 units of` 726.]
Q 28 Show the stores ledger entries as they would appear when using :
(a) the Weighted Average Method,
(b) the LIFO method,
of pricing issues, in connection with the following transactions :
April Units Value
1. Balance in hand b/f 300 600
2. Purchased 200 440
4. Issued 150
6. Purchased 200 460
11. Issued 150
19. Issued 200
22. Purchased 200 480
27. Issued 250
In a period of rising prices such as above, what are the effects of each
method ?
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(ICWA, Inter, Dec. 1977 adapted)

[Ans. (a) 150 units of` 342, (b) 150 units of ` 300.]
[Hint. In periods of rising prices, the average price is always less than the
current price. In LIFO the product costs reflect current market prices but
stock is valued at out-of-date prices.]
Q 29 Set up a "Stores Ledger" from and enter the following transactions
adopting the weighted average method of pricing out issues :
2005
August 1 Opening balance—50 units @ ` 3 per unit.
August 5 Issued out to production : 2 units.
August 7 Purchased 48 units @ ` 4 per unit.
August 9 Issued out 20 units to production.
August 19 Purchased 76 units @ ` 3 per unit.
August 24 Received back into stores 19 units out of 20 units issued on 9th
August, 2005. August 27 Issued to production 10 units.
[Ans. Stock 161 units of` 527.70.]
Q 30 The following is a history of the receipts and issues of materials in
a factory, during February, 2000:
Feb. 1 Opening balance 500 units @` 25.00
Feb. 3 Issued 70 units
Feb. 4 Issued 100 units
Feb. 8 Issued 80 units
Feb. 13 Received from vendor 200 units @` 24.50
Feb. 14 Refund of surplus from a work order 15 units @` 24.00
Feb. 16 Issued 180 units
Feb. 20 Received from vendor 240 units @` 24.37
Feb. 24 Issued 304 units
Feb. 25 Received from vendor 320 units @` 24.31
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Feb. 26 Issued 112 units

Feb. 27 Refund of surplus from a work order 12 units @` 24.50
Feb. 28 Received from vendor 100 units @` 25.00
Feb. 29 Returned to vendor 50 units
The store verifier of the factory noted that on 15th he had found a shortage
of 5 units and on the 27th another shortage of 8 units.
Write out the complete Stores Ledger Account in respect of the above
materials using (i) 'first-in-first-out' and (ii) 'last-in-first-out' principles.
[Ans. Stock FIFO 478 units of` 11,693; LIFO 478 units of` 11,812.]
Q 31 Prepare a Store Ledger Account on the basis of LIFO method.
Jan.
1 Opening Stock 220 units @` 9.00 each
4 Purchased 540 units®` 9.10 each
5 Issued 280 units
10 Purchased 180 units®` 8.90 each
16 Issued 160 units
18 Purchased 340 units®` 10.20each
25 Issued 200 units
[B.Com. (Pass), Delhi, 1982 adapted]
[Ans. Balance 640 units of` 5,952]
Q 32 The following are the figures about the receipt and issue of materials
in Z Ltd. during January, 2007:
January 1, 2007, received 500 units @ ` 2.00 each
January 18, 2007, received 350 units @` 2.10 each
January 19, 2007, issued 600 units
January 24, 2007, received 600 units @ ` 2.20 each
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January 25, 2007, issued 450 units

January 26, 2007, received 500 units @` 2.30 each
January 29, 2007, issued 510 units
Prepare Stores Ledger Account using [B. Com. (Pass) Delhi, 1992,
LIFO method. adapted]
[Ans. Balance 390 units ` 808] 28.
Q33 . Prepare Stores Ledger as per First In First Out Method of Pricing
of Issue of Materials :
Units Rate
April 1,2003 Opening Balance 1,000 `5
April 3, 2003 Received 5,000 `6
April 4, 2003 Issued 3,000
April 6, 2003 Issued 2,000
April 8, 2003 Received 3,000 `5
April 9, 2003 Issued 2,000
The weekly physical stock taking on April 7, 2003 showed as shortage of
100 units.
[B. Com. (Pass) Delhi, 1994 adapted]
[Ans. Balance 1,900 units @ ` 5 of ` 9,500]
34. From the following information prepare stores ledger account as per
FIFO method :
1st Jan. Opening Stock 200 pieces @ ` 2 each
5th Jan. Purchases 100 pieces @ ` 2.20 each
10th Jan. Purchases 150 pieces @ ` 2.40 each
20th Jan. Purchases 180 pieces @ ` 2.50 each
2nd Jan. Issues 150 pieces
 ANUJ KUMAR SINGH +919899600701

7th Jan. Issues 100 pieces

12th Jan. Issues 100 pieces
28th Jan. Issues 200 pieces
[B. Com. (Pass) Delhi, 1996]
[Ans. Balance 80 units @ ` 2.50 of` 200].
Q 35 Prepare Stores Ledger from the following using Weighted Average
method of Pricing :
2007
1/2 Opening Stock 200 units costing `
2,000
2007 Receipts 2007 Issues
3/2 300 units®` 12 p.u. 2/2 100 units
5/2 100 units®` 16 p.u. 4/2 200 units
8/2 200 units®` 13p.u. 7/2 200 units
9/2 100 units
The physical verification on 6th February, 2007 revealed a shortage of 10
units.
[B. Com. (Pass) Delhi, 1997 adapted]
[Ans. Balance 290 units @ ` 13 of ` 3,770].