Calculate the value of inventory using:

(a) Weighted average Method, and

(b) the LIFO method of Pricing issues in connection with the following transaction.

April Units Values 1 Balance in hand b/f 300 600 2 Purchased 200 440 4 Issued 150 6 Purchased 200 460 11 Issued 150 19 Issued 200 22 Purchased 200 480 27 Issued 250 In a period of rising pricing, as in above, what are the effects of each method.

[Ans.:

(a) 150 units of Rs. 342,

(b) 150 units of Rs. 300]