SMART ACADEMY

Dedicated to Excellence
Sub:- Cost Accounting
TIME:

MARKS

Q 1. Solve any 2
A) From the following information of lion Ltd. prepare a stores ledger account (under the LIFO method):
1 April 2008
opening balance :50 kg @ Rs. 10.10 (issued 30 kg)
2 April 2008
purchase 60 kg @ Rs. 10.20
3 April 2008
Issued 25 kg (it is verified that there is shortage of 1 kg)
10 April 2008
goods returned to stores: 10 kg (which were issued to work @ Rs. 9.15)
15 April 2008
issued 40 kg
22 April 2008
purchased 22 kg @ Rs. 10.40
28 April 2008
issued 38 kg
B) Show the year and value of inventory of mulund India Ltd. under the FIFO and FIFO methods for the
following data :
Opening balance
12,000 units @ Rs. 2.10 per unit.
Particular
Received (units)
Issued (units)
1st quarter
20,000 @ Rs. 2.20
16,000
nd
2 quarter
30,000 @ Rs. 2.40
26,000
rd
3 quarter
25,000 @ Rs. 2.30
32,000
4th quarter
10,000 @ Rs. 2.25
8000
Assume that purchases were made on the first day of the quarter.
C) Stocks are issued at standard price and the following are the transaction of Matunga Ltd. for a certain
period:
Opening stock
1,000 kgs @ Rs. 10 per kg
Purchased
5,000 kgs @ Rs. 8.50/kg
Issued
600 kgs
Issued
3,750 kgs
Issued
650 kgs
Purchased
2,500 kgs at Rs. 9 per Kg
Prepare Ledger Account on the basis of FIFO and LIFO Methods.
Q 2. Solve any one
A) From the following figures of Ruby Stone Ltd. Calculate the EOQ.
Annual consumption of material
4,000 kg
Cost of placing one order
Rs. 5
Cost per unit
Rs. 2 kg
Storage and carrying cost
12 % on average inventory
B) A manufacturer buys certain equipment from outside suppliers at Rs. 40 per unit. Total annual needs
are 800 units. The following data are also available.
Annual return on investment
10%
Rent, Insurance taxes per unit per year
Rs. 1
Cost of placing an order
Rs. 100
Determine the EOQ.