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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 FIFO principle.
- a)Rs 784,500
- b)Rs 685,000
- c)Rs 388,500
- d)Rs 758,000
Correct answer is option 'A'. Can you explain this answer?
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Most Upvoted Answer
Bharat Indian Oil is a bulk distributor of petrol. A periodic inventor...
Given Information:
- 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:
- June 1: 2,00,000 litres @ Rs.2.85 per litre
- June 30: 1,00,000 litres @ Rs.3.03 per litre
- Closing stock on June 30: 1,30,000 litres
Calculation of Cost of Goods Sold (COGS) using FIFO principle:
1. Calculate the Cost of Goods Available for Sale:
- Opening Stock Value = Opening Stock Quantity * Opening Stock Price
= 1,00,000 litres * Rs.3 per litre
= Rs.3,00,000
- Purchases Value = (Quantity on June 1 * Price on June 1) + (Quantity on June 30 * Price on June 30)
= (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
- Cost of Goods Available for Sale = Opening Stock Value + Purchases Value
= Rs.3,00,000 + Rs.8,73,000
= Rs.11,73,000
2. Calculate the Cost of Goods Sold:
- Cost of Goods Sold = Cost of Goods Available for Sale - Closing Stock Value
- Closing Stock Value = Closing Stock Quantity * Price on June 30
= 1,30,000 litres * Rs.3.03 per litre
= Rs.3,93,900
- Cost of Goods Sold = Rs.11,73,000 - Rs.3,93,900
= Rs.7,79,100
3. Add General Administration Cost:
- Total Cost of Goods Sold = Cost of Goods Sold + General Administration Cost
= Rs.7,79,100 + Rs.25,000
= Rs.8,04,100
Final Answer:
The amount of Cost of Goods Sold for June using the FIFO principle is Rs.8,04,100. However, none of the given answer options match this amount.
- 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:
- June 1: 2,00,000 litres @ Rs.2.85 per litre
- June 30: 1,00,000 litres @ Rs.3.03 per litre
- Closing stock on June 30: 1,30,000 litres
Calculation of Cost of Goods Sold (COGS) using FIFO principle:
1. Calculate the Cost of Goods Available for Sale:
- Opening Stock Value = Opening Stock Quantity * Opening Stock Price
= 1,00,000 litres * Rs.3 per litre
= Rs.3,00,000
- Purchases Value = (Quantity on June 1 * Price on June 1) + (Quantity on June 30 * Price on June 30)
= (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
- Cost of Goods Available for Sale = Opening Stock Value + Purchases Value
= Rs.3,00,000 + Rs.8,73,000
= Rs.11,73,000
2. Calculate the Cost of Goods Sold:
- Cost of Goods Sold = Cost of Goods Available for Sale - Closing Stock Value
- Closing Stock Value = Closing Stock Quantity * Price on June 30
= 1,30,000 litres * Rs.3.03 per litre
= Rs.3,93,900
- Cost of Goods Sold = Rs.11,73,000 - Rs.3,93,900
= Rs.7,79,100
3. Add General Administration Cost:
- Total Cost of Goods Sold = Cost of Goods Sold + General Administration Cost
= Rs.7,79,100 + Rs.25,000
= Rs.8,04,100
Final Answer:
The amount of Cost of Goods Sold for June using the FIFO principle is Rs.8,04,100. However, none of the given answer options match this amount.
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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 FIFO principle.a)Rs 784,500b)Rs 685,000c)Rs 388,500d)Rs 758,000Correct answer is option 'A'. Can you explain this answer?
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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 FIFO principle.a)Rs 784,500b)Rs 685,000c)Rs 388,500d)Rs 758,000Correct 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 FIFO principle.a)Rs 784,500b)Rs 685,000c)Rs 388,500d)Rs 758,000Correct 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 FIFO principle.a)Rs 784,500b)Rs 685,000c)Rs 388,500d)Rs 758,000Correct 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 FIFO principle.a)Rs 784,500b)Rs 685,000c)Rs 388,500d)Rs 758,000Correct 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 FIFO principle.a)Rs 784,500b)Rs 685,000c)Rs 388,500d)Rs 758,000Correct 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 FIFO principle.a)Rs 784,500b)Rs 685,000c)Rs 388,500d)Rs 758,000Correct 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 FIFO principle.a)Rs 784,500b)Rs 685,000c)Rs 388,500d)Rs 758,000Correct 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 FIFO principle.a)Rs 784,500b)Rs 685,000c)Rs 388,500d)Rs 758,000Correct 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 FIFO principle.a)Rs 784,500b)Rs 685,000c)Rs 388,500d)Rs 758,000Correct 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 FIFO principle.a)Rs 784,500b)Rs 685,000c)Rs 388,500d)Rs 758,000Correct 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 FIFO principle.a)Rs 784,500b)Rs 685,000c)Rs 388,500d)Rs 758,000Correct 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 FIFO principle.a)Rs 784,500b)Rs 685,000c)Rs 388,500d)Rs 758,000Correct answer is option 'A'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
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