Stores Ledger Account ( Weighted Average Method Receipt Issues S Balance Date Qty. Rate Amt. Oly. Qty. Amt. Rate Rs. Amt Rs. Rate Rs. Rs. Rs. Rs. 01.03.2003 2 400 200 2 400 200 300 10.03.2003 2.40 720 200 2 400 2.40 720 300 250 250 2.24 560 560 1,210 250 2.60 650 500 15.03.2003 18.03.2003 20.03.2003 25.03.2003 31.03.2003 200 2.42 484 300 726 300 2.50 750 600 1,476 100 2 200 700 1,676 Working Notes Issue Price = Value of materials in stock / quantity in stock Issue rate on 15 = (400 + 720)/(200 + 300) = Rs. 2.24 2. Issue rate on 20" = (560 + 650/1250 + 250)= Rs. 2.42 (3) Periodic Simple Average Method: Under this method, the simple average rate is calculated for a particular period ignoring the rate of opening stock. The issue price is calculated by totaling the S8 unit price of all materials purchased during a particular period by the total number of prices during that period. Thus this rate is applied to the issue to production for a particular period say a month and not at the occasion of each issue of materials. . Illustration: 7 From the following detail of stores receipts and issues of material "EXE" in a manufacturing unit, prepare the Stores Ledger using Periodic Simple Average Method. 2003 Jan.1 Opening Stock 200 units at Rs. 2 per unit Jan. 5 Purchased 400 units at Rs. 3 per unit Jan. 10 Issued 250 units Jan. 16 Purchased 500 units at Rs. 3 per unit Jan. 20 Issued 300 units Jan. 31 Purchased 200 units at Rs. 4 per unit Feb. 10 Issued 500 units Feb. 15 Purchased 400 units at Rs. 4.50 per unit Feb. 20 Issued 300 units Feb. 25 Purchased 200 units at Rs. 6 per unit