Calculate the value of closing stock from the following according to LIFO method Janu...........

Costing - Phase (I & II) Basics of Cost Control and Analysis

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Calculate the value of closing stock from the following according to LIFO method:

January 4^th , 2018: Opening balance: 50 units @ Rs. 4

Receipts:

January 6^th, 2018: 100 units @ Rs. 5

January 15^th, 2018, 2018: 200 units @ Rs. 4.50

Issues:

January 5 ^th, 2018: 30 units

January 17^th: 150 units

Rs. 765

Rs. 805

Rs. 786

Rs. 700

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Explanation:

In Last in First Out (LIFO), the material purchased in the last lot is consumed first and thus the closing stock represents the material purchased first. According to this method, the price of the last batch of material purchased is charged for all issues of material, until all units from the last batch have been issued, after which the price of the previous batch of material purchased is charged. In give problem, closing stock will be: 20 units x 4 (+) 100 units x 5 (+) 50 x 4.50= 805/-