Question 6 Ogbono Ltd uses a First-In-First-Out (FIFO) system to allocate materials to jobs done and...

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Question 6 Ogbono Ltd uses a First-In-First-Out (FIFO) system to allocate materials to jobs done and the stores records show the following details of materials issued to a job: Date Received (kg) Unit price () Issued to production (kg) 1 Jun 120 1.50 5 Jun 80 6 Jun 200 1.60 1.70 12 Jun 15 Jun 130 200 Required: (a) Calculate the cost of materials issued from stores using FIFO. (b) Calculate the closing stock value at the end of June. (c) (6.5 marks) (1.5 marks) Explain whether the total cost of materials calculated in (a) above would increase or decrease if the company were to adopt Last-In-Last-Out (LIFO). (2 marks) (Total marks for question 6: 10 marks) Question 6 Ogbono Ltd uses a First-In-First-Out (FIFO) system to allocate materials to jobs done and the stores records show the following details of materials issued to a job: Date Received (kg) Unit price () Issued to production (kg) 1 Jun 120 1.50 5 Jun 80 6 Jun 200 1.60 1.70 12 Jun 15 Jun 130 200 Required: (a) Calculate the cost of materials issued from stores using FIFO. (b) Calculate the closing stock value at the end of June. (c) (6.5 marks) (1.5 marks) Explain whether the total cost of materials calculated in (a) above would increase or decrease if the company were to adopt Last-In-Last-Out (LIFO). (2 marks) (Total marks for question 6: 10 marks)