LIFO Method
Question 1: The MTM manufacturing company disclose the following information of their inventories, for Mar, 2020.
The data related to the beginning Raw material inventory and purchases of raw material inventory are as follow:
|
Date |
Particulars |
Units |
Rate(Rs) |
|
Mar 01 |
Inventory (beginning ) |
3685 |
17 |
|
08 |
Purchases |
4600 |
19 |
|
14 |
Purchases |
3100 |
22 |
|
22 |
Purchases |
2300 |
19 |
|
27 |
Purchases |
3000 |
21 |
During the month of January raw material were used for production was worth Rs. 243645. FOH was ¾ of Direct Material, and Direct labor cost Rs. 1,80,000. There is no Beginning inventory of Work in Process and Finished good, while Ending inventory worth Rs. 30000 of finished goods and 25% is still work in process.
Required:
A. Cost of Goods Statement for each case.
- LIFO Method
- Weighted Average Method
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