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Bharat Indian Oil is a bulk distributor of petrol. A periodic inventory of petrol on hand is taken when the books are closed at the end of each month. The following summary of information is available for the month :
Sales Rs.9,45,000
General administration cost Rs.25,000
Opening Stock: 1,00,000 litres @ Rs.3 per litre Rs.3,00,000
Purchases (including freight inward):
June 1 2,00,000 litres @ Rs.2.85 per litre
June 30 1,00,000 litres @ Rs.3.03 per litre
June 30 Closing stock 1,30,000 litres
Q.Using the information given in problem, compute the amount of cost of goods sold for June using LIFO principle.
- a)Rs 7,80,000
- b)Rs 6,75,000
- c)Rs 8,15,000
- d)Rs 7,95,000
Correct answer is option 'A'. Can you explain this answer?
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Verified Answer
Bharat Indian Oil is a bulk distributor of petrol. A periodic inventor...
Correct Answer :- a
Explanation : Calculation of quantity of goods sold = Opening stock + purchases - Closing stock
= 1,00,000 + 3,00,000 - 1,30,000
= 2,70,000
Amount of goods sold (under LIFO)
= 2,00,000 x 2.85 = 5,70,000
70,000 x 3 = 2,10,000
now,
5,70,000 + 2,10,000 = 7,80,000
(Under LIFO method the last purchased/produced inventory is sold first)
Most Upvoted Answer
Bharat Indian Oil is a bulk distributor of petrol. A periodic inventor...
Calculation of Cost of Goods Sold using LIFO Principle:
1. Calculate the Cost of Opening Stock:
Opening Stock = Quantity of Opening Stock * Cost per litre
= 1,00,000 litres * Rs. 3 per litre
= Rs. 3,00,000
2. Calculate the Cost of Purchases:
Purchases = Quantity of June 1 Purchases * Cost per litre + Quantity of June 30 Purchases * Cost per litre
= 2,00,000 litres * Rs. 2.85 per litre + 1,00,000 litres * Rs. 3.03 per litre
= Rs. 5,70,000 + Rs. 3,03,000
= Rs. 8,73,000
3. Calculate the Cost of Goods Available for Sale:
Cost of Goods Available for Sale = Cost of Opening Stock + Cost of Purchases
= Rs. 3,00,000 + Rs. 8,73,000
= Rs. 11,73,000
4. Calculate the Cost of Closing Stock:
Closing Stock = Quantity of Closing Stock * Cost per litre
= 1,30,000 litres * Rs. 3.03 per litre
= Rs. 3,94,900
5. Calculate the Cost of Goods Sold:
Cost of Goods Sold = Cost of Goods Available for Sale - Cost of Closing Stock
= Rs. 11,73,000 - Rs. 3,94,900
= Rs. 7,78,100
Therefore, the amount of Cost of Goods Sold for June using LIFO principle is Rs. 7,78,100.
1. Calculate the Cost of Opening Stock:
Opening Stock = Quantity of Opening Stock * Cost per litre
= 1,00,000 litres * Rs. 3 per litre
= Rs. 3,00,000
2. Calculate the Cost of Purchases:
Purchases = Quantity of June 1 Purchases * Cost per litre + Quantity of June 30 Purchases * Cost per litre
= 2,00,000 litres * Rs. 2.85 per litre + 1,00,000 litres * Rs. 3.03 per litre
= Rs. 5,70,000 + Rs. 3,03,000
= Rs. 8,73,000
3. Calculate the Cost of Goods Available for Sale:
Cost of Goods Available for Sale = Cost of Opening Stock + Cost of Purchases
= Rs. 3,00,000 + Rs. 8,73,000
= Rs. 11,73,000
4. Calculate the Cost of Closing Stock:
Closing Stock = Quantity of Closing Stock * Cost per litre
= 1,30,000 litres * Rs. 3.03 per litre
= Rs. 3,94,900
5. Calculate the Cost of Goods Sold:
Cost of Goods Sold = Cost of Goods Available for Sale - Cost of Closing Stock
= Rs. 11,73,000 - Rs. 3,94,900
= Rs. 7,78,100
Therefore, the amount of Cost of Goods Sold for June using LIFO principle is Rs. 7,78,100.
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Bharat Indian Oil is a bulk distributor of petrol. A periodic inventory of petrol on hand is taken when the books are closed at the end of each month. The following summary of information is available for the month :Sales Rs.9,45,000General administration cost Rs.25,000Opening Stock: 1,00,000 litres @ Rs.3 per litre Rs.3,00,000Purchases (including freight inward):June 1 2,00,000 litres @ Rs.2.85 per litreJune 30 1,00,000 litres @ Rs.3.03 per litreJune 30 Closing stock 1,30,000 litresQ.Using the information given in problem, compute the amount of cost of goods sold for June using LIFO principle.a)Rs 7,80,000b)Rs 6,75,000c)Rs 8,15,000d)Rs 7,95,000Correct answer is option 'A'. Can you explain this answer?
Question Description
Bharat Indian Oil is a bulk distributor of petrol. A periodic inventory of petrol on hand is taken when the books are closed at the end of each month. The following summary of information is available for the month :Sales Rs.9,45,000General administration cost Rs.25,000Opening Stock: 1,00,000 litres @ Rs.3 per litre Rs.3,00,000Purchases (including freight inward):June 1 2,00,000 litres @ Rs.2.85 per litreJune 30 1,00,000 litres @ Rs.3.03 per litreJune 30 Closing stock 1,30,000 litresQ.Using the information given in problem, compute the amount of cost of goods sold for June using LIFO principle.a)Rs 7,80,000b)Rs 6,75,000c)Rs 8,15,000d)Rs 7,95,000Correct answer is option 'A'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Bharat Indian Oil is a bulk distributor of petrol. A periodic inventory of petrol on hand is taken when the books are closed at the end of each month. The following summary of information is available for the month :Sales Rs.9,45,000General administration cost Rs.25,000Opening Stock: 1,00,000 litres @ Rs.3 per litre Rs.3,00,000Purchases (including freight inward):June 1 2,00,000 litres @ Rs.2.85 per litreJune 30 1,00,000 litres @ Rs.3.03 per litreJune 30 Closing stock 1,30,000 litresQ.Using the information given in problem, compute the amount of cost of goods sold for June using LIFO principle.a)Rs 7,80,000b)Rs 6,75,000c)Rs 8,15,000d)Rs 7,95,000Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Bharat Indian Oil is a bulk distributor of petrol. A periodic inventory of petrol on hand is taken when the books are closed at the end of each month. The following summary of information is available for the month :Sales Rs.9,45,000General administration cost Rs.25,000Opening Stock: 1,00,000 litres @ Rs.3 per litre Rs.3,00,000Purchases (including freight inward):June 1 2,00,000 litres @ Rs.2.85 per litreJune 30 1,00,000 litres @ Rs.3.03 per litreJune 30 Closing stock 1,30,000 litresQ.Using the information given in problem, compute the amount of cost of goods sold for June using LIFO principle.a)Rs 7,80,000b)Rs 6,75,000c)Rs 8,15,000d)Rs 7,95,000Correct answer is option 'A'. Can you explain this answer?.
Bharat Indian Oil is a bulk distributor of petrol. A periodic inventory of petrol on hand is taken when the books are closed at the end of each month. The following summary of information is available for the month :Sales Rs.9,45,000General administration cost Rs.25,000Opening Stock: 1,00,000 litres @ Rs.3 per litre Rs.3,00,000Purchases (including freight inward):June 1 2,00,000 litres @ Rs.2.85 per litreJune 30 1,00,000 litres @ Rs.3.03 per litreJune 30 Closing stock 1,30,000 litresQ.Using the information given in problem, compute the amount of cost of goods sold for June using LIFO principle.a)Rs 7,80,000b)Rs 6,75,000c)Rs 8,15,000d)Rs 7,95,000Correct answer is option 'A'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Bharat Indian Oil is a bulk distributor of petrol. A periodic inventory of petrol on hand is taken when the books are closed at the end of each month. The following summary of information is available for the month :Sales Rs.9,45,000General administration cost Rs.25,000Opening Stock: 1,00,000 litres @ Rs.3 per litre Rs.3,00,000Purchases (including freight inward):June 1 2,00,000 litres @ Rs.2.85 per litreJune 30 1,00,000 litres @ Rs.3.03 per litreJune 30 Closing stock 1,30,000 litresQ.Using the information given in problem, compute the amount of cost of goods sold for June using LIFO principle.a)Rs 7,80,000b)Rs 6,75,000c)Rs 8,15,000d)Rs 7,95,000Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Bharat Indian Oil is a bulk distributor of petrol. A periodic inventory of petrol on hand is taken when the books are closed at the end of each month. The following summary of information is available for the month :Sales Rs.9,45,000General administration cost Rs.25,000Opening Stock: 1,00,000 litres @ Rs.3 per litre Rs.3,00,000Purchases (including freight inward):June 1 2,00,000 litres @ Rs.2.85 per litreJune 30 1,00,000 litres @ Rs.3.03 per litreJune 30 Closing stock 1,30,000 litresQ.Using the information given in problem, compute the amount of cost of goods sold for June using LIFO principle.a)Rs 7,80,000b)Rs 6,75,000c)Rs 8,15,000d)Rs 7,95,000Correct answer is option 'A'. Can you explain this answer?.
Solutions for Bharat Indian Oil is a bulk distributor of petrol. A periodic inventory of petrol on hand is taken when the books are closed at the end of each month. The following summary of information is available for the month :Sales Rs.9,45,000General administration cost Rs.25,000Opening Stock: 1,00,000 litres @ Rs.3 per litre Rs.3,00,000Purchases (including freight inward):June 1 2,00,000 litres @ Rs.2.85 per litreJune 30 1,00,000 litres @ Rs.3.03 per litreJune 30 Closing stock 1,30,000 litresQ.Using the information given in problem, compute the amount of cost of goods sold for June using LIFO principle.a)Rs 7,80,000b)Rs 6,75,000c)Rs 8,15,000d)Rs 7,95,000Correct answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
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Here you can find the meaning of Bharat Indian Oil is a bulk distributor of petrol. A periodic inventory of petrol on hand is taken when the books are closed at the end of each month. The following summary of information is available for the month :Sales Rs.9,45,000General administration cost Rs.25,000Opening Stock: 1,00,000 litres @ Rs.3 per litre Rs.3,00,000Purchases (including freight inward):June 1 2,00,000 litres @ Rs.2.85 per litreJune 30 1,00,000 litres @ Rs.3.03 per litreJune 30 Closing stock 1,30,000 litresQ.Using the information given in problem, compute the amount of cost of goods sold for June using LIFO principle.a)Rs 7,80,000b)Rs 6,75,000c)Rs 8,15,000d)Rs 7,95,000Correct answer is option 'A'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
Bharat Indian Oil is a bulk distributor of petrol. A periodic inventory of petrol on hand is taken when the books are closed at the end of each month. The following summary of information is available for the month :Sales Rs.9,45,000General administration cost Rs.25,000Opening Stock: 1,00,000 litres @ Rs.3 per litre Rs.3,00,000Purchases (including freight inward):June 1 2,00,000 litres @ Rs.2.85 per litreJune 30 1,00,000 litres @ Rs.3.03 per litreJune 30 Closing stock 1,30,000 litresQ.Using the information given in problem, compute the amount of cost of goods sold for June using LIFO principle.a)Rs 7,80,000b)Rs 6,75,000c)Rs 8,15,000d)Rs 7,95,000Correct answer is option 'A'. Can you explain this answer?, a detailed solution for Bharat Indian Oil is a bulk distributor of petrol. A periodic inventory of petrol on hand is taken when the books are closed at the end of each month. The following summary of information is available for the month :Sales Rs.9,45,000General administration cost Rs.25,000Opening Stock: 1,00,000 litres @ Rs.3 per litre Rs.3,00,000Purchases (including freight inward):June 1 2,00,000 litres @ Rs.2.85 per litreJune 30 1,00,000 litres @ Rs.3.03 per litreJune 30 Closing stock 1,30,000 litresQ.Using the information given in problem, compute the amount of cost of goods sold for June using LIFO principle.a)Rs 7,80,000b)Rs 6,75,000c)Rs 8,15,000d)Rs 7,95,000Correct answer is option 'A'. Can you explain this answer? has been provided alongside types of Bharat Indian Oil is a bulk distributor of petrol. A periodic inventory of petrol on hand is taken when the books are closed at the end of each month. The following summary of information is available for the month :Sales Rs.9,45,000General administration cost Rs.25,000Opening Stock: 1,00,000 litres @ Rs.3 per litre Rs.3,00,000Purchases (including freight inward):June 1 2,00,000 litres @ Rs.2.85 per litreJune 30 1,00,000 litres @ Rs.3.03 per litreJune 30 Closing stock 1,30,000 litresQ.Using the information given in problem, compute the amount of cost of goods sold for June using LIFO principle.a)Rs 7,80,000b)Rs 6,75,000c)Rs 8,15,000d)Rs 7,95,000Correct answer is option 'A'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Bharat Indian Oil is a bulk distributor of petrol. A periodic inventory of petrol on hand is taken when the books are closed at the end of each month. The following summary of information is available for the month :Sales Rs.9,45,000General administration cost Rs.25,000Opening Stock: 1,00,000 litres @ Rs.3 per litre Rs.3,00,000Purchases (including freight inward):June 1 2,00,000 litres @ Rs.2.85 per litreJune 30 1,00,000 litres @ Rs.3.03 per litreJune 30 Closing stock 1,30,000 litresQ.Using the information given in problem, compute the amount of cost of goods sold for June using LIFO principle.a)Rs 7,80,000b)Rs 6,75,000c)Rs 8,15,000d)Rs 7,95,000Correct answer is option 'A'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
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