CA Foundation Exam > CA Foundation Questions > Bharat Indian Oil is a bulk distributor of pe...
Start Learning for Free
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.Compute the value of inventory on June 30 using FIFO method of inventory costing.
- a)Rs 3,88,500
- b)Rs 4,18,500
- c)Rs 2,58,000
- d)Rs 3,60,500
Correct answer is option 'A'. Can you explain this answer?
| FREE This question is part of | Download PDF Attempt this Test |
Most Upvoted Answer
Bharat Indian Oil is a bulk distributor of petrol. A periodic inventor...
Calculation of Inventory Value on June 30 using FIFO method:
- Step 1: Calculate Cost of Goods Sold (COGS)
- Opening Stock: 1,00,000 litres @ Rs.3 per litre = Rs.3,00,000
- Purchases:
- 2,00,000 litres @ Rs.2.85 per litre = Rs.5,70,000
- 1,00,000 litres @ Rs.3.03 per litre = Rs.3,03,000
- Total Cost of Goods Available for Sale = Rs.11,73,000
- Cost of Goods Sold = Rs.11,73,000 - Closing Stock = Rs.11,73,000 - (1,30,000 litres x Rs.3.03 per litre) = Rs.7,84,100
- Step 2: Calculate Inventory Value on June 30
- FIFO method assumes that items purchased first are sold first
- Calculate the value of Closing Stock based on the latest purchase price
- 1,00,000 litres from June 30 purchase @ Rs.3.03 per litre = Rs.3,03,000
- 30,000 litres from Opening Stock @ Rs.3 per litre = Rs.90,000
- Total Inventory Value on June 30 = Rs.3,03,000 + Rs.90,000 = Rs.3,93,000
Therefore, the value of inventory on June 30 using FIFO method is Rs.3,93,000. Option 'A' Rs.3,88,500 is the closest value, but the correct answer should be Rs.3,93,000.
- Step 1: Calculate Cost of Goods Sold (COGS)
- Opening Stock: 1,00,000 litres @ Rs.3 per litre = Rs.3,00,000
- Purchases:
- 2,00,000 litres @ Rs.2.85 per litre = Rs.5,70,000
- 1,00,000 litres @ Rs.3.03 per litre = Rs.3,03,000
- Total Cost of Goods Available for Sale = Rs.11,73,000
- Cost of Goods Sold = Rs.11,73,000 - Closing Stock = Rs.11,73,000 - (1,30,000 litres x Rs.3.03 per litre) = Rs.7,84,100
- Step 2: Calculate Inventory Value on June 30
- FIFO method assumes that items purchased first are sold first
- Calculate the value of Closing Stock based on the latest purchase price
- 1,00,000 litres from June 30 purchase @ Rs.3.03 per litre = Rs.3,03,000
- 30,000 litres from Opening Stock @ Rs.3 per litre = Rs.90,000
- Total Inventory Value on June 30 = Rs.3,03,000 + Rs.90,000 = Rs.3,93,000
Therefore, the value of inventory on June 30 using FIFO method is Rs.3,93,000. Option 'A' Rs.3,88,500 is the closest value, but the correct answer should be Rs.3,93,000.
Attention CA Foundation Students!
To make sure you are not studying endlessly, EduRev has designed CA Foundation study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in CA Foundation.
|
Explore Courses for CA Foundation exam
|
|
Similar CA Foundation Doubts
Top Courses for CA FoundationView all
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.Compute the value of inventory on June 30 using FIFO method of inventory costing.a)Rs 3,88,500b)Rs 4,18,500c)Rs 2,58,000d)Rs 3,60,500Correct 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.Compute the value of inventory on June 30 using FIFO method of inventory costing.a)Rs 3,88,500b)Rs 4,18,500c)Rs 2,58,000d)Rs 3,60,500Correct 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.Compute the value of inventory on June 30 using FIFO method of inventory costing.a)Rs 3,88,500b)Rs 4,18,500c)Rs 2,58,000d)Rs 3,60,500Correct 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.Compute the value of inventory on June 30 using FIFO method of inventory costing.a)Rs 3,88,500b)Rs 4,18,500c)Rs 2,58,000d)Rs 3,60,500Correct 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.Compute the value of inventory on June 30 using FIFO method of inventory costing.a)Rs 3,88,500b)Rs 4,18,500c)Rs 2,58,000d)Rs 3,60,500Correct 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.Compute the value of inventory on June 30 using FIFO method of inventory costing.a)Rs 3,88,500b)Rs 4,18,500c)Rs 2,58,000d)Rs 3,60,500Correct 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.Compute the value of inventory on June 30 using FIFO method of inventory costing.a)Rs 3,88,500b)Rs 4,18,500c)Rs 2,58,000d)Rs 3,60,500Correct 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.Compute the value of inventory on June 30 using FIFO method of inventory costing.a)Rs 3,88,500b)Rs 4,18,500c)Rs 2,58,000d)Rs 3,60,500Correct answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
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.Compute the value of inventory on June 30 using FIFO method of inventory costing.a)Rs 3,88,500b)Rs 4,18,500c)Rs 2,58,000d)Rs 3,60,500Correct 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.Compute the value of inventory on June 30 using FIFO method of inventory costing.a)Rs 3,88,500b)Rs 4,18,500c)Rs 2,58,000d)Rs 3,60,500Correct 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.Compute the value of inventory on June 30 using FIFO method of inventory costing.a)Rs 3,88,500b)Rs 4,18,500c)Rs 2,58,000d)Rs 3,60,500Correct 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.Compute the value of inventory on June 30 using FIFO method of inventory costing.a)Rs 3,88,500b)Rs 4,18,500c)Rs 2,58,000d)Rs 3,60,500Correct 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.Compute the value of inventory on June 30 using FIFO method of inventory costing.a)Rs 3,88,500b)Rs 4,18,500c)Rs 2,58,000d)Rs 3,60,500Correct answer is option 'A'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
|
|
Explore Courses for CA Foundation exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup