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Indian oil is a bulk distributor of petrol. A perpetual 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 of month.
Sales – Rs.37,80,00
General Administration cost – Rs.1,00,000
Opening inventory:
1 lakh liters @ 12/- per liter -Rs.12,00,00
Purchases (including freight inward):
June – 1 2 lakh liters @ 11.40 Rs. Per liter.
June -30 1 lakh liters @ 12.12 Rs. Per liter.
June – 30 closing inventory. 1,30,000 liters.
General Administration cost – Rs.1,00,000
Opening inventory:
1 lakh liters @ 12/- per liter -Rs.12,00,00
Purchases (including freight inward):
June – 1 2 lakh liters @ 11.40 Rs. Per liter.
June -30 1 lakh liters @ 12.12 Rs. Per liter.
June – 30 closing inventory. 1,30,000 liters.
Using the information given above compute the amount of cost of goods sold for the month of June using LIFO method.
- a)Rs. 31,50,000
- b)Rs. 27,00,000
- c)Rs. 32,60,000
- d)Rs. 31,80,000
Correct answer is option 'A'. Can you explain this answer?
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Indian oil is a bulk distributor of petrol. Aperpetual inventory of pe...
Solution:
Given data:
Opening inventory: 1,00,000 liters @ Rs. 12/- per liter = Rs. 12,00,000
Purchases (including freight inward):
June 1: 2,00,000 liters @ Rs. 11.40 per liter
June 30: 1,00,000 liters @ Rs. 12.12 per liter
Closing inventory on June 30: 1,30,000 liters
Calculation:
We will use the LIFO (Last In First Out) method to compute the cost of goods sold for the month of June.
Step 1: Calculate the cost of goods available for sale
Cost of opening inventory = 1,00,000 liters x Rs. 12/- per liter = Rs. 12,00,000
Cost of purchases = (2,00,000 liters x Rs. 11.40 per liter) + (1,00,000 liters x Rs. 12.12 per liter)
= Rs. 22,80,000 + Rs. 12,12,000
= Rs. 34,92,000
Cost of goods available for sale = Rs. 12,00,000 + Rs. 34,92,000 = Rs. 46,92,000
Step 2: Calculate the cost of goods sold
We will assume that the closing inventory is made up of the most recent purchases.
Cost of 1,30,000 liters @ Rs. 12.12 per liter = Rs. 15,75,600
Cost of goods sold = Cost of goods available for sale - Cost of closing inventory
= Rs. 46,92,000 - Rs. 15,75,600
= Rs. 31,16,400
Step 3: Add the General Administration cost to arrive at the cost of goods sold for the month of June.
Cost of goods sold for the month of June = Rs. 31,16,400 + Rs. 1,00,000 = Rs. 31,50,000
Therefore, the correct option is (a) Rs. 31,50,000.
Given data:
Opening inventory: 1,00,000 liters @ Rs. 12/- per liter = Rs. 12,00,000
Purchases (including freight inward):
June 1: 2,00,000 liters @ Rs. 11.40 per liter
June 30: 1,00,000 liters @ Rs. 12.12 per liter
Closing inventory on June 30: 1,30,000 liters
Calculation:
We will use the LIFO (Last In First Out) method to compute the cost of goods sold for the month of June.
Step 1: Calculate the cost of goods available for sale
Cost of opening inventory = 1,00,000 liters x Rs. 12/- per liter = Rs. 12,00,000
Cost of purchases = (2,00,000 liters x Rs. 11.40 per liter) + (1,00,000 liters x Rs. 12.12 per liter)
= Rs. 22,80,000 + Rs. 12,12,000
= Rs. 34,92,000
Cost of goods available for sale = Rs. 12,00,000 + Rs. 34,92,000 = Rs. 46,92,000
Step 2: Calculate the cost of goods sold
We will assume that the closing inventory is made up of the most recent purchases.
Cost of 1,30,000 liters @ Rs. 12.12 per liter = Rs. 15,75,600
Cost of goods sold = Cost of goods available for sale - Cost of closing inventory
= Rs. 46,92,000 - Rs. 15,75,600
= Rs. 31,16,400
Step 3: Add the General Administration cost to arrive at the cost of goods sold for the month of June.
Cost of goods sold for the month of June = Rs. 31,16,400 + Rs. 1,00,000 = Rs. 31,50,000
Therefore, the correct option is (a) Rs. 31,50,000.
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Indian oil is a bulk distributor of petrol. Aperpetual inventory of petrol on hand is takenwhen the books are closed at the end of eachmonth. The following summary of informationis available of month.Sales –Rs.37,80,00General Administration cost –Rs.1,00,000Opening inventory:1 lakh liters @ 12/- per liter -Rs.12,00,00Purchases (including freight inward):June – 1 2 lakh liters @ 11.40 Rs. Per liter.June -30 1 lakh liters @ 12.12 Rs. Per liter.June – 30 closing inventory. 1,30,000 liters.Using the information given above computethe amount of cost of goods sold for themonth of June using LIFO method.a)Rs. 31,50,000b)Rs. 27,00,000c)Rs. 32,60,000d)Rs. 31,80,000Correct answer is option 'A'. Can you explain this answer?
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Indian oil is a bulk distributor of petrol. Aperpetual inventory of petrol on hand is takenwhen the books are closed at the end of eachmonth. The following summary of informationis available of month.Sales –Rs.37,80,00General Administration cost –Rs.1,00,000Opening inventory:1 lakh liters @ 12/- per liter -Rs.12,00,00Purchases (including freight inward):June – 1 2 lakh liters @ 11.40 Rs. Per liter.June -30 1 lakh liters @ 12.12 Rs. Per liter.June – 30 closing inventory. 1,30,000 liters.Using the information given above computethe amount of cost of goods sold for themonth of June using LIFO method.a)Rs. 31,50,000b)Rs. 27,00,000c)Rs. 32,60,000d)Rs. 31,80,000Correct 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 Indian oil is a bulk distributor of petrol. Aperpetual inventory of petrol on hand is takenwhen the books are closed at the end of eachmonth. The following summary of informationis available of month.Sales –Rs.37,80,00General Administration cost –Rs.1,00,000Opening inventory:1 lakh liters @ 12/- per liter -Rs.12,00,00Purchases (including freight inward):June – 1 2 lakh liters @ 11.40 Rs. Per liter.June -30 1 lakh liters @ 12.12 Rs. Per liter.June – 30 closing inventory. 1,30,000 liters.Using the information given above computethe amount of cost of goods sold for themonth of June using LIFO method.a)Rs. 31,50,000b)Rs. 27,00,000c)Rs. 32,60,000d)Rs. 31,80,000Correct 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 Indian oil is a bulk distributor of petrol. Aperpetual inventory of petrol on hand is takenwhen the books are closed at the end of eachmonth. The following summary of informationis available of month.Sales –Rs.37,80,00General Administration cost –Rs.1,00,000Opening inventory:1 lakh liters @ 12/- per liter -Rs.12,00,00Purchases (including freight inward):June – 1 2 lakh liters @ 11.40 Rs. Per liter.June -30 1 lakh liters @ 12.12 Rs. Per liter.June – 30 closing inventory. 1,30,000 liters.Using the information given above computethe amount of cost of goods sold for themonth of June using LIFO method.a)Rs. 31,50,000b)Rs. 27,00,000c)Rs. 32,60,000d)Rs. 31,80,000Correct answer is option 'A'. Can you explain this answer?.
Indian oil is a bulk distributor of petrol. Aperpetual inventory of petrol on hand is takenwhen the books are closed at the end of eachmonth. The following summary of informationis available of month.Sales –Rs.37,80,00General Administration cost –Rs.1,00,000Opening inventory:1 lakh liters @ 12/- per liter -Rs.12,00,00Purchases (including freight inward):June – 1 2 lakh liters @ 11.40 Rs. Per liter.June -30 1 lakh liters @ 12.12 Rs. Per liter.June – 30 closing inventory. 1,30,000 liters.Using the information given above computethe amount of cost of goods sold for themonth of June using LIFO method.a)Rs. 31,50,000b)Rs. 27,00,000c)Rs. 32,60,000d)Rs. 31,80,000Correct 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 Indian oil is a bulk distributor of petrol. Aperpetual inventory of petrol on hand is takenwhen the books are closed at the end of eachmonth. The following summary of informationis available of month.Sales –Rs.37,80,00General Administration cost –Rs.1,00,000Opening inventory:1 lakh liters @ 12/- per liter -Rs.12,00,00Purchases (including freight inward):June – 1 2 lakh liters @ 11.40 Rs. Per liter.June -30 1 lakh liters @ 12.12 Rs. Per liter.June – 30 closing inventory. 1,30,000 liters.Using the information given above computethe amount of cost of goods sold for themonth of June using LIFO method.a)Rs. 31,50,000b)Rs. 27,00,000c)Rs. 32,60,000d)Rs. 31,80,000Correct 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 Indian oil is a bulk distributor of petrol. Aperpetual inventory of petrol on hand is takenwhen the books are closed at the end of eachmonth. The following summary of informationis available of month.Sales –Rs.37,80,00General Administration cost –Rs.1,00,000Opening inventory:1 lakh liters @ 12/- per liter -Rs.12,00,00Purchases (including freight inward):June – 1 2 lakh liters @ 11.40 Rs. Per liter.June -30 1 lakh liters @ 12.12 Rs. Per liter.June – 30 closing inventory. 1,30,000 liters.Using the information given above computethe amount of cost of goods sold for themonth of June using LIFO method.a)Rs. 31,50,000b)Rs. 27,00,000c)Rs. 32,60,000d)Rs. 31,80,000Correct answer is option 'A'. Can you explain this answer?.
Solutions for Indian oil is a bulk distributor of petrol. Aperpetual inventory of petrol on hand is takenwhen the books are closed at the end of eachmonth. The following summary of informationis available of month.Sales –Rs.37,80,00General Administration cost –Rs.1,00,000Opening inventory:1 lakh liters @ 12/- per liter -Rs.12,00,00Purchases (including freight inward):June – 1 2 lakh liters @ 11.40 Rs. Per liter.June -30 1 lakh liters @ 12.12 Rs. Per liter.June – 30 closing inventory. 1,30,000 liters.Using the information given above computethe amount of cost of goods sold for themonth of June using LIFO method.a)Rs. 31,50,000b)Rs. 27,00,000c)Rs. 32,60,000d)Rs. 31,80,000Correct 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 Indian oil is a bulk distributor of petrol. Aperpetual inventory of petrol on hand is takenwhen the books are closed at the end of eachmonth. The following summary of informationis available of month.Sales –Rs.37,80,00General Administration cost –Rs.1,00,000Opening inventory:1 lakh liters @ 12/- per liter -Rs.12,00,00Purchases (including freight inward):June – 1 2 lakh liters @ 11.40 Rs. Per liter.June -30 1 lakh liters @ 12.12 Rs. Per liter.June – 30 closing inventory. 1,30,000 liters.Using the information given above computethe amount of cost of goods sold for themonth of June using LIFO method.a)Rs. 31,50,000b)Rs. 27,00,000c)Rs. 32,60,000d)Rs. 31,80,000Correct answer is option 'A'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
Indian oil is a bulk distributor of petrol. Aperpetual inventory of petrol on hand is takenwhen the books are closed at the end of eachmonth. The following summary of informationis available of month.Sales –Rs.37,80,00General Administration cost –Rs.1,00,000Opening inventory:1 lakh liters @ 12/- per liter -Rs.12,00,00Purchases (including freight inward):June – 1 2 lakh liters @ 11.40 Rs. Per liter.June -30 1 lakh liters @ 12.12 Rs. Per liter.June – 30 closing inventory. 1,30,000 liters.Using the information given above computethe amount of cost of goods sold for themonth of June using LIFO method.a)Rs. 31,50,000b)Rs. 27,00,000c)Rs. 32,60,000d)Rs. 31,80,000Correct answer is option 'A'. Can you explain this answer?, a detailed solution for Indian oil is a bulk distributor of petrol. Aperpetual inventory of petrol on hand is takenwhen the books are closed at the end of eachmonth. The following summary of informationis available of month.Sales –Rs.37,80,00General Administration cost –Rs.1,00,000Opening inventory:1 lakh liters @ 12/- per liter -Rs.12,00,00Purchases (including freight inward):June – 1 2 lakh liters @ 11.40 Rs. Per liter.June -30 1 lakh liters @ 12.12 Rs. Per liter.June – 30 closing inventory. 1,30,000 liters.Using the information given above computethe amount of cost of goods sold for themonth of June using LIFO method.a)Rs. 31,50,000b)Rs. 27,00,000c)Rs. 32,60,000d)Rs. 31,80,000Correct answer is option 'A'. Can you explain this answer? has been provided alongside types of Indian oil is a bulk distributor of petrol. Aperpetual inventory of petrol on hand is takenwhen the books are closed at the end of eachmonth. The following summary of informationis available of month.Sales –Rs.37,80,00General Administration cost –Rs.1,00,000Opening inventory:1 lakh liters @ 12/- per liter -Rs.12,00,00Purchases (including freight inward):June – 1 2 lakh liters @ 11.40 Rs. Per liter.June -30 1 lakh liters @ 12.12 Rs. Per liter.June – 30 closing inventory. 1,30,000 liters.Using the information given above computethe amount of cost of goods sold for themonth of June using LIFO method.a)Rs. 31,50,000b)Rs. 27,00,000c)Rs. 32,60,000d)Rs. 31,80,000Correct answer is option 'A'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Indian oil is a bulk distributor of petrol. Aperpetual inventory of petrol on hand is takenwhen the books are closed at the end of eachmonth. The following summary of informationis available of month.Sales –Rs.37,80,00General Administration cost –Rs.1,00,000Opening inventory:1 lakh liters @ 12/- per liter -Rs.12,00,00Purchases (including freight inward):June – 1 2 lakh liters @ 11.40 Rs. Per liter.June -30 1 lakh liters @ 12.12 Rs. Per liter.June – 30 closing inventory. 1,30,000 liters.Using the information given above computethe amount of cost of goods sold for themonth of June using LIFO method.a)Rs. 31,50,000b)Rs. 27,00,000c)Rs. 32,60,000d)Rs. 31,80,000Correct answer is option 'A'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
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