Stores pricing Z, Ltd had the following transactions in one of its raw materials during April

You are required to:

(a) write up the stores ledger card using (i) FIFO and (ii) LIFO methods of stock valuation; (8 marks)

(b) state the cost of material used for each system during April; (2 marks)

(c) describe the weighted-average method of valuing stocks and explain how the use of this method would affect the cost of materials used and the balance sheet of Z Ltd compared to FIFO and LIFO in times of consistently rising prees. (Do NOT restate the stores ledger card for the above transactions using this method.)LO1

Transcribed Image Text:

Opening stock April 4 Bought 10 Used 12 Bought 13 Used 16 Bought 21 Used 23 Used 26 Bought 29 Used 40 units @ 10 each 140 units @ 11 each 90 units 60 units @ 12 each 100 units 200 units @ 10 each 70 units 80 units 50 units @ 12 each 60 units