Closing Stock – NBC Institute

MI – May 2024 – L1 – SB – Q3 – Costing Methods

Compute the price of store issues and the value of closing stocks using FIFO and LIFO methods.

Question

From the information given below, you are required to compute the price of store issues and the value of closing stocks using:
i. First-In-First-Out (FIFO) basis
ii. Last-In-First-Out (LIFO) basis

January 2nd: Purchased 500 Units of XYZ at N40 per unit
January 7th: Purchased 200 Units at N45 per unit
January 10th: Issued 300 Units
January 12th: Purchased 350 Units at N42 per unit
January 15th: Issued 500 Units
January 18th: Purchased 200 Units at N38 per unit

Answer

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Tags: Closing Stock, FIFO, LIFO, Pricing methods
Level: Level 1

Topic: Costing Methods
Series: MAY 2024

IMAC – AUG 2022 – L1 – Q1 – Budgeting

Differences in operating profit under marginal and absorption costing, preparation of profit statements, production forecast, and material purchase budget.

Question

a) Marginal costing and Absorption costing are cost management techniques used to allocate cost to the products produced for their valuation. There are differences in the operating profit when either marginal costing or absorption costing is deployed.

Required: State TWO (2) reasons that account for the differences in the operating profit under Marginal costing and Absorption costing systems. (4 marks)

b) Adam Ltd is a producer of product Wale. In a period, it produced 20,000 units and sold 18,000 units of product Wale. The selling price per unit of the output is GH¢5. In the planned production period, relevant cost and revenue data were stated as:

	GH¢
Sales	100,000
Production cost:
Variable	35,000
Fixed	15,000
Administration and selling overhead:
Fixed	25,000

Required: Prepare a profit or loss statement based on the following costing systems: i) Marginal costing systems. (8 marks) ii) Absorption costing systems. (8 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Closing Stock, Fixed Overhead, Marginal Cost, Material Purchase Budget, Production Forecast
Level: Level 1

Topic: Budgeting
Series: AUG 2022

MI – May 2024 – L1 – SB – Q3 – Costing Methods

Compute the price of store issues and the value of closing stocks using FIFO and LIFO methods.

Question

From the information given below, you are required to compute the price of store issues and the value of closing stocks using:
i. First-In-First-Out (FIFO) basis
ii. Last-In-First-Out (LIFO) basis

January 2nd: Purchased 500 Units of XYZ at N40 per unit
January 7th: Purchased 200 Units at N45 per unit
January 10th: Issued 300 Units
January 12th: Purchased 350 Units at N42 per unit
January 15th: Issued 500 Units
January 18th: Purchased 200 Units at N38 per unit

Answer

Find Related Questions by Tags, levels, etc.

Tags: Closing Stock, FIFO, LIFO, Pricing methods
Level: Level 1

Topic: Costing Methods
Series: MAY 2024

IMAC – AUG 2022 – L1 – Q1 – Budgeting

Differences in operating profit under marginal and absorption costing, preparation of profit statements, production forecast, and material purchase budget.

Question

Required: State TWO (2) reasons that account for the differences in the operating profit under Marginal costing and Absorption costing systems. (4 marks)

	GH¢
Sales	100,000
Production cost:
Variable	35,000
Fixed	15,000
Administration and selling overhead:
Fixed	25,000

Required: Prepare a profit or loss statement based on the following costing systems: i) Marginal costing systems. (8 marks) ii) Absorption costing systems. (8 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Closing Stock, Fixed Overhead, Marginal Cost, Material Purchase Budget, Production Forecast
Level: Level 1

Topic: Budgeting
Series: AUG 2022

Question Tag: Closing Stock

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MI – May 2024 – L1 – SB – Q3 – Costing Methods

Compute the price of store issues and the value of closing stocks using FIFO and LIFO methods.

IMAC – AUG 2022 – L1 – Q1 – Budgeting

Differences in operating profit under marginal and absorption costing, preparation of profit statements, production forecast, and material purchase budget.

MI – May 2024 – L1 – SB – Q3 – Costing Methods

Compute the price of store issues and the value of closing stocks using FIFO and LIFO methods.

IMAC – AUG 2022 – L1 – Q1 – Budgeting

Differences in operating profit under marginal and absorption costing, preparation of profit statements, production forecast, and material purchase budget.

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Question Tag: Closing Stock

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MI – May 2024 – L1 – SB – Q3 – Costing Methods

Compute the price of store issues and the value of closing stocks using FIFO and LIFO methods.

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IMAC – AUG 2022 – L1 – Q1 – Budgeting

Differences in operating profit under marginal and absorption costing, preparation of profit statements, production forecast, and material purchase budget.

You're reporting an error for "IMAC – AUG 2022 – L1 – Q1 – Budgeting"

MI – May 2024 – L1 – SB – Q3 – Costing Methods

Compute the price of store issues and the value of closing stocks using FIFO and LIFO methods.

You're reporting an error for "MI – May 2024 – L1 – SB – Q3 – Costing Methods"

IMAC – AUG 2022 – L1 – Q1 – Budgeting

Differences in operating profit under marginal and absorption costing, preparation of profit statements, production forecast, and material purchase budget.

You're reporting an error for "IMAC – AUG 2022 – L1 – Q1 – Budgeting"

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