1 | Inventory Management-Chapter 8

Creative Question Exercises

FIFO Method
1. The purchase and issue related information of Bajitpur Limited during the month of May 2022
are as follows:
Date Particulars Unit Rate (Taka)
May - 1 Balance 1000 80
May -8 Purchase 600 70
May -10 Issue 800 -
May -15 Purchase 400 75
May -22 Issue 800 -
May -25 Issue 200 -
May -31 Shortage 10 -

(a) Calculate total purchase (in units and Taka).

(b) Calculate goods available for sale (in unit and Taka).
(c) Prepare store ledger under FIFO method.
2. Inventory section of Ayon Ltd have presented following information.
2020
June 1 Balance 500 unit @ 8.00
June 7 Purchase 600 unit @10.00
June 15 Issue 700 unit
June 20 Purchase 300 unit @ 12.00
June 30 Issue 500 unit
On June 30, inventory of raw material is 150 unit.
(a) Determent the deficit unit of raw materials
(b) Prepare inventory ledger using FIFO
(c) Determine the gross profit rate if soles if sales is Tk. 15,000 and others direct expense is Tk.
1000.
FIFO & LIFO Method
3. The information of stores department of Amzad as follows for the year 2018:
March 1 Opening stock 520 units @ TK. 10 per unit.
March 6 Purchase 600 units @ TK. 10.20 per unit.
March 11 Issue 710 units
March 14 Return 30 units which purchased on 6.
March 18 Purchase 800 units @ TK. 9.50 per units
March 24 Issue 770 units
March 26 Return 20 units which issued on 11.
March 31 Closing stock 400 units
(a) Calculate shortage units.
(b) Prepare store ledger under FIFO method.
(c) Prepare store ledger under LIFO method.
4. Receipt and issue of raw materials of the factory of Ratan & Co. on January 2016 were as follows:-
Date Particular Unit Rate P.U
Jan 1 Balance 1,000 80.00
6 Purchase 600 70.00
10 Issue 800
16 Purchase 400 75.00
20 Issue 900
30 Issue 100
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Requirements:
(a) Calculate total purchase amount.
(b) Prepare store ledger A/c under FIFO method.
(c) Prepare store ledger A/c under LIFO method.
5. Store department of Tabassum perfume Ltd presented the following particulars are as-
Date Particulars Units Rate per unit
2016
June 1 Opening stock 1,200 5.50
June 5 Purchase 1,000 6.60
June 8 Issued 600
June 12 Issued 700
June 14 Return form factory 300
June 18 Issued 900
June 21 Purchase 2100 6.75
June 23 Issued 1600
June 30 Closing stock 700
Requirement:
(a) Calculate surplus or shortage quantity of materials.
(b) Prepare store ledger account under “FIFO” Method taking the transaction of June 1, 3, 12,
14 and 23
(c) Prepare store ledger account under “LIFO” Method taking the transaction of June 1, 3, 18,
21 and 23.
LIFO & Weighted Average Method
6. The information related to Aryan Garments Ltd, which were supplied by store department
2017
March -1 Beginning balance 800 units @ Tk. 12 per unite
March -4 Purchase of inventory 1,100 units @ Tk. 13 each.
March -7 Purchase of inventory 350 units @ Tk. 1 each
March -9 Issue of inventory 700 units
March -14 Issue of inventory 850 units
March -20 Purchase of inventory 1200 units @ Tk. 15 each
March -21 Issue of inventory 1050 units
March -25 Purchase of inventory 750 units @ Tk. 16 each
March -28 Issue of inventory 800 units
March -30 Ending inventory 650 units,
(a) Determine the deficit units of material
(b) Prepare store ledger account under LIFO method with the help of item no. 1, 4, 7, 9 and 14.
(c) Prepare store ledger account under weighted average method with the help of item no. 1, 20,
21, 25 and 28.
7. The beginning of the year opening inventory of Jonaki traders was 800 units @ Tk. 10 per unit.
Whole the year purchase and issues of Zonaki Traders were as follows:
January-25 Per unit @ Tk. 20, 1000 units.
January-30 Issue, 1200 units.
April-10 Per unit @ Tk. 25, 1500 units.
June-15 Issue, 1000 units.
August-20 Per unit @ Tk. 30, 1800 units.
November- Issue, 800 units.
20 Per unit @ Tk. 22, 2500 units.
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December-15

(a) Calculate closing stock units of Jonaki Traders.

(b) Calculate value of closing stock under weighted average method.
(c) Calculate gross profit by preparing income statement. (Assuming total sales 5,500 units @
Tk. 40 per unit).
FIFO & Weighted Average Method
8. Store department of ‘Sylhet Dress House’ supplies the following information as on year 2022:
January 1 Opening stock 600 units @ Tk. 52 per unit.
January 5 Purchase 1,200 units @ Tk. 50 unit.
January 10 Issue 1000 units.
January 15 Purchase 700 units @ Tk. 54 unit.
January 20 Issue 800 units.
January 25 Purchase 500 units @ Tk. 56 unit.
January 30 Issue 800 units.
(a) Compute the ending inventory in unit.
(b) Prepare a stores ledger account under FIFO method.
(c) Prepare a stores ledger account under weighted average method.
9. Raw material related information of production department of Beauty Company's are as follows:
2022
January 1 Opening balance 100 kg. per kg. @ Tk. 10 each.
10 Raw material purchase 50 kg. per kg. @ Tk. 12 each.
15 Issue to factory 80 kg.
20 Raw material purchase 120 kg. per kg. @ Tk. 15 each.
25 Issue to factory 110 kg.
(a) Calculate the amount of raw material purchase during the month of January.
(b) Prepare store ledger under FIFO method.
(c) Prepare store ledger under weighted average method.
10. Bandhan Limited is a manufacturing concern. The following information takes from his books of
account:
2022
March -1 Opening stock 250 units @ Tk. 20 per unit.
March -15 Issue to factory 200 units.
March -21 Purchases 300 units @ Tk. 22 per unit.
March-25 Issue to factory 250 units.
March -29 Return from factory 10 units.
(a) Determine the closing stock (unit) at the end of month.
(b) Prepare the stock ledger under FIFO method.
(c) Prepare the store ledger under weighted average method.
11. The following information of Rafi Ltd. for the month of November, 2022 relating to Raw material
purchased and issued to factory:
2022
November -1 Opening stock 200 units at Tk. 12 per unit.
November -7 Raw material purchased 900 units at Tk. 14 per unit.
November -11 Issued to factory 700 units.
November -15 Raw material purchased 400 units at Tk. 15 per unit.
November -21 Return from factory 50 units.
November -30 Issued to factory 500 units.
(a) Compute the amount of closing stock (in unit) from the above information.
(b) Prepare store leader under FIFO system.
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(c) Prepare store leader under weighted average system.

12.
Mahfuz Traders
Dates Details Units
01/01/22 Stock @ Tk. 18 per unit 400
25/02/22 Purchase @ Tk. 17 per unit 600
15/05/22 Purchase @ Tk. 19 per unit 700
13/08/22 Purchase @ Tk. 18 per unit 500
17/11/22 Purchase @ Tk. 20 per unit 400
? Total sales for the year 2,000
(a) Calculate closing stock in units.
(b) Calculate the amount of closing stock in Tk. under weighted average method.
(c) Calculate the amount of closing stock in Tk. under first in first out method.
13. Merchandise purchase and issue related information of Palash Ltd. for the month of January, 2022.
January 1 Beginning inventory 300 unit @ of Tk. 10 per unit.
January 2 Purchase 300 unit @ of Tk. 11 per unit.
January 3 Issue 400 unit.
January 7 Issue 100 unit.
January 10 Purchase 400 unit @ of Tk. 12 per unit.
January 25 Issue 200 unit.
(a) Determine the amount of saleable goods.
(b) Prepare store ledger account under FIFO method.
(c) Prepare store ledger account under weighted average method.

14. Inventory, purchase and sales related information of Ahsan company is given below:
2022
April 1 Opening stock 100 unit @10
April 5 Purchase 400 unit @12
April 10 Sales 300 unit
April 20 Purchase 300 unit @13
April 25 Sales 300 unit
Required:
(a) Purchase price of saleable goods.
(b) Prepare inventory ledger using FIFO method.
(c) Prepare inventory ledger using weighted average method.
15. Noyon traders follows perpetual inventory method. On July, 2022, inventory related information
was-
Date Description Unit Per unit cost
July-1 Opening inventory 400 4
July-5 Purchase 600 5
July-15 Sales 300 7
July-20 Purchase 200 5
July-25 Sales 350 8
July-28 Purchase Return (July 20) 20
Closing inventory 500 unit at the end of the month.
Required:
(a) Determine the total unit of deficit stock.
(b) Prepare Inventory ledger using FIFO.
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(c) Prepare inventory ledger using weighted average method and determine cost of goods sold.

16. Information for Sonali Ltd for July, 2022 is given below:
2022
July 1 Purchase 200 piece @10
July 10 Purchase 500 piece @12
July 15 Issue 600 piece
July 20 Purchase 400 piece @13
July 22 Issue 300 piece
July 25 Purchase 300 piece @15
July 30 Rotten goods 200 piece
(a) Determine the amount of closing inventories.
(b) Prepare inventory ledger using FIFO method.
(c) Prepare inventory ledger using weighted average method.
17. Padma Garments has the following raw material related information for the year 2021:
2021
January 1 Opening stock 500 units @ Tk. 5.00 per unit
January 7 Purchase 400 units @ Tk. 4.00 per unit.
January 10 Issue 600 units
January 20 Purchase 200 units @ Tk. 6.00 per unit.
January 25 Issue 400 units.
January 31 Closing stock 75 units.
(a) Calculate the deficiency units.
(b) Calculate the value of stock under FIFO method.
(c) Prepare store ledger under weighted average method.
18. Store Department of Fazle Ltd. Provides the followings information:
2021
June 1, Opening stock 200 units @ per unit.
2021
June 6 Purchase 300 units @ Tk 15, per unit.
June 12 Sales 400 units.
June 24 Purchase 300 units @ Tk. 10 per unit
June 28 Sales 300 units.
(a) Calculate purchase price of goods sold.
(b) Prepare store ledger under FIFO method.
(c) Prepare store ledger under weighted average method.
19. Information related to raw materials received from the production department of Rupali
Company is as follows:
2021
March 1 Opening balance 60 kg per Tk. 160.
March 7 Purchase raw material of 70 kg per 170
March 15 Issue in factory 90 kg.
March 20 Purchase raw materials 40 Kg per Tk. 180.
March 27 Issue in factory 55 kg.
(a) Determine the value of received goods with opening stock
(b) Determine the amount and value of closing inventory using FIFO method.
(c) Determine the amount and value of closing inventory using weighted average method.
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20. Ria Mills Limited is a manufacturing concern. The following transactions are extracted from its
books.
2021
January 1 Opening stock of material 400 units @ Tk. 10 each.
January 12 Issued to factory 250 units.
January 18 Material purchase 400 units @ Tk. 12 each
January 25 Issued to factory 450 units
January 30 Material purchase 250 units@ Tk. 13 each
(a) Calculate balance in units at 31 January 2021.
(b) Prepare store ledger account under FIFO method.
(c) Prepare store ledger account under weighted average method.

Shablil Hussain Alhadi

BBA, Major in Accounting and Information System,
Shahjalal University of Science and Technology, Sylhet.
MOBILE +8801793109920