Pricing methods – NBC Institute

MI – Nov 2015 – L1 – SB – Q3 – Accounting for Cost Elements

Determines inventory balance using FIFO and weighted average pricing methods.

Question

A company located in Ijora area of Lagos extracted the following figures from its materials analysis sheet:

Date	Transaction	Quantity	Unit price (N)
1st January	Balance b/f	10,000	50
25th January	Receipt	7,000	55
6th February	Issue	14,000	–
3rd March	Receipt	5,000	60
27th March	Receipt	4,500	62
4th June	Issue	7,500	–
24th June	Issue	2,500	–
30th June	Receipt	6,500	65

You are required to record the above transactions in the inventory ledger and determine the value of the inventory balance at the end of June 2015 using:
a. First-in-First-out pricing method. (10 Marks)
b. Weighted average pricing method. (10 Marks)

(Total 20 Marks)

Answer

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Tags: Cost Accounting, FIFO, Inventory Management, Inventory Valuation, Material Analysis, Pricing methods, Weighted Average
Level: Level 1

Topic: Accounting for Cost Elements
Series: NOV 2015

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

MA – May 2017 – L2 – Q1d – Transfer pricing

Describe three methods of transfer pricing and discuss their limitations.

Question

Transfer pricing is the method used to sell a product from one subsidiary to another within a company. It impacts the purchasing behavior of the subsidiaries and may have income tax implications for the company as a whole.

Required:

Describe any THREE methods of transfer pricing and discuss their limitations.

(6 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Cost Management, Internal, Pricing methods, Tax implications, Transfer Pricing
Level: Level 2

Topic: Transfer Pricing
Series: MAY 2017

MI – Nov 2015 – L1 – SB – Q3 – Accounting for Cost Elements

Determines inventory balance using FIFO and weighted average pricing methods.

Question

A company located in Ijora area of Lagos extracted the following figures from its materials analysis sheet:

Date	Transaction	Quantity	Unit price (N)
1st January	Balance b/f	10,000	50
25th January	Receipt	7,000	55
6th February	Issue	14,000	–
3rd March	Receipt	5,000	60
27th March	Receipt	4,500	62
4th June	Issue	7,500	–
24th June	Issue	2,500	–
30th June	Receipt	6,500	65

(Total 20 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Cost Accounting, FIFO, Inventory Management, Inventory Valuation, Material Analysis, Pricing methods, Weighted Average
Level: Level 1

Topic: Accounting for Cost Elements
Series: NOV 2015

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

MA – May 2017 – L2 – Q1d – Transfer pricing

Describe three methods of transfer pricing and discuss their limitations.

Question

Required:

Describe any THREE methods of transfer pricing and discuss their limitations.

(6 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Cost Management, Internal, Pricing methods, Tax implications, Transfer Pricing
Level: Level 2

Topic: Transfer Pricing
Series: MAY 2017

Question Tag: Pricing methods

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MI – Nov 2015 – L1 – SB – Q3 – Accounting for Cost Elements

Determines inventory balance using FIFO and weighted average pricing methods.

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.

MA – May 2017 – L2 – Q1d – Transfer pricing

Describe three methods of transfer pricing and discuss their limitations.

MI – Nov 2015 – L1 – SB – Q3 – Accounting for Cost Elements

Determines inventory balance using FIFO and weighted average pricing methods.

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.

MA – May 2017 – L2 – Q1d – Transfer pricing

Describe three methods of transfer pricing and discuss their limitations.

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MI – Nov 2015 – L1 – SB – Q3 – Accounting for Cost Elements

Determines inventory balance using FIFO and weighted average pricing methods.

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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.

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

MA – May 2017 – L2 – Q1d – Transfer pricing

Describe three methods of transfer pricing and discuss their limitations.

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MI – Nov 2015 – L1 – SB – Q3 – Accounting for Cost Elements

Determines inventory balance using FIFO and weighted average pricing methods.

You're reporting an error for "MI – Nov 2015 – L1 – SB – Q3 – Accounting for Cost Elements"

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"

MA – May 2017 – L2 – Q1d – Transfer pricing

Describe three methods of transfer pricing and discuss their limitations.

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