materials were charged to the factory at cost on the fifo principle prepare stores l 558874

A clothing manufacturer commenced business on 1 January 1989. Textile materials used by the manufacturer include two types: M and N. During the six months till 30 June 1989, purchases were as follows:

4 January

1,000 m of type M

Rs 10.00 per metre

6 January

1,600 m of type N

Rs 15.00 per metre

18 March

2,300 m of type M

Rs 12.00 per metre

16 April

3,000 m of type N

Rs 16.00 per metre

26 May

800 m of type M

Rs 9.50 per metre

Issues from the storeroom to the factory were as follows:

7 January

700 m of M

12 January

1,200 m of N

28 March

1,420 m of M

22 April

2,860 m of N

1 June

1,580 m of M

Materials were charged to the factory at cost on the FIFO principle. Prepare stores ledger account.

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