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FIFO, LIFO and Average Closing Stock Costing by Perpetual and Periodic Example

May 29, 2013 Leave a comment

Problem

Accounts of ABC Ltd as on 31st Dec, 1997

Dec, 1997

1

Opening Stock 300 Units @ Rs. 9.70

3

Purchases 250 Units @ Rs. 9.80

11

Issues 400 Units

15

Purchases 300 Units @ Rs. 10.05

20

Issues 210 Units

25

Purchases 150 Units @ Rs. 10.30

26

Issues 100 Units

Work out the value of closing stock under the following methods of pricing

  1. FIFO (Perpetual)
  2. LIFO (Perpetual)
  3. Weighted Average (Perpetual)
  4. FIFO (Periodic)
  5. LIFO ((Periodic)
  6. Weighted Average (Periodic)

Solution

FIFO (Perpetual)

Date

Purchase

Issues

Balance

Dec, 1997

Qty

Rate

Value

Qty

Rate

Value

Qty

Rate

Value

1

300

9.7

2910

3

250

9.8

2450

300

9.7

2910

250

9.8

2450

11

300

9.7

2910

150

9.8

1470

100

9.8

980

0

15

300

10.05

3015

150

9.8

1470

0

300

10.05

3015

20

0

150

9.8

1470

240

10.05

2412

0

60

10.05

603

0

25

150

10.3

1545

240

10.05

2412

0

150

10.3

1545

26

0

100

10.05

1005

140

10.05

1407

0

150

10.3

1545

Value of Closing Stock

290

2952

LIFO (Perpetual) Read more…

OpenERP Training in Pakistan from NUST, Islamabad (Non OpenERP Partner)

February 9, 2012 8 comments

Dear Viewers,

NUST offering OpenERP training. NUST is one of the ‘TOP 100 UNIVERSITIES IN ASIA’ and one of the best educational industry in Pakistan. NUST have 16-18 schools of different areas in Pakistan including capital cities.

This workshop has been designed for both IT Professionals and people from Management background who would like to explore how HRM can be effectively managed through an open source ERP solution. The workshop is also beneficial for IT and Management students to know about state of the art in ERP solutions deployment and its related challenges.

Please Follow the details from given advertisement.

Registration: http://www.seecs.nust.edu.pk/openerp

Contact With:

SCHOOL OF ELECTRICAL ENGINEERING AND COMPUTER SCIENCE

A center of excellence for quality education and research

Sector H-12 Islamabad Tel: 051 9085 2400 Fax: 051 8317363 info@seecs.nust.edu.pk  www.seecs.nust.edu.pk  www.nust.edu.pk

Dividend, Book Value, Market Value, Subscribed Shares Calculation

February 6, 2011 11 comments

Balance Sheet of a company:

Balance Sheet of a Business

Assets

Liabilities & Stockholders Equity

Current Assets(Includes Subscribed Receivable 7200000) 31629714 Current liabilities 15387428
Fixed Assets 53856000 long-term liabilities 10258286
Stockholders’ equity 59840000
Total Assets 85485714 Total 85485714

Statement of Shareholders equity:

Shareholders Equity
Preferred Stock
Par Value Rs. 100
Callable at Rs, 102
Authorized Shares 200000
Dividend per Share Rs. 6
12000000
Total Preferred Stock at par 12000000
Common Stock
Par Value Rs. 5
Authorized Shares 5000000
Issued 10000000
Subscribed 4000000
Total Common Stock at Par 14000000
Additional Paid in Capital:
Preferred Stock at premium 360, 000
Common (including subscribed) at premium 30800000
Total Additional Paid in Capital 31160000
Retained Earning 2680000
Total Stockholders Equity 59840000

Read more…

Preparation of Cash Flow statement of PEPSICO using Indirect Method example 2

November 21, 2010 3 comments

Note: In this second example of cash flow preparation, I am using the actual data of PEPSICO.

How to prepare cash flow from the start, you can check my post previous https://mohsinpage.wordpress.com/2010/11/15/preparation-of-cash-flows-statement-using-direct-method-example-1/. In my previous post used additional information extracted from the analyses of two year balance sheet. In this tutorial I will analyze whole two year balance sheet and will extract additional information in the categories of Operating activities, Investing activities and Financing Activities.

Analyze the Balance Sheet and income statement:

Below is the balance sheet of PEPSICO of 2000 and 2001 and income statement .of 2001

CONSOLIDATED BALANCE SHEET FOR PEPSICO,INC., AS OF DEC 31

Millions of dollars

2001

2000

Assets
Current Assets
Cash and equivalent 1649 1505
Receivable 2142 2129
Inventories 1310 1192
Other Current Assets 752 791
Total Current Assets 5853 5617
Fixed Assets
Property, Plant and Equipment 12866 11466
Less: Accumulated Depreciation 5990 4908
Net Fixed Assets 6876 6558
Net Intangible Assets 4841 4714
Other Assets 4125 3868
Total Assets 21695 20757
Liabilities and Shareholders Equity
Current Liabilities
Debt Due for repayment 354 202
Accounts Payable 1238 1212
Other Current Liabilities 3406 3381
Total Current Liabilities 4998 4795
Long term debt 2651 3009
Other long term liabilities 5398 5349
Total Liabilities 13047 13153
Shareholders Equity
Common Stock and other paid-in capital 35 667
Retained earnings 8605 6937
Total Shareholders equity 21695 20757
Total Liability and Shareholders Equity 21695 20757

Read more…

Preparation of cash flows statement using Direct Method Example 1

November 15, 2010 7 comments

Cash flows statement prepared using two financial statements, 1st Income Statement and 2nd Balance Sheet.

Before preparing cash flows statement,

a. Analyze Balance Sheet

b. Reordering of Income Statements

Step1:

a. Analyze Balance Sheet:

we will analyze balance sheet each account of current year and previous year. From balance sheet analyzing we extract additional information (AI) for cash flows statement and regroup these additional information in three major categories.

  • Operational Activities
  • Investing Activities
  • Financing Activities

In this tutorial, I will not explain the analyzing of balance sheet, I just provide data in the form of additional information according to above three categories. I will use this categorize additional information for cash flow preparation directly. Read more…

VU Specialization Certification:Fall 2010 Subject FIN621 Financial Statement Analysis Assignment 1

October 29, 2010 Leave a comment

Subject: FIN621 Financial Statement Analysis

Assignment # 1:

A. You are required to compare the two Trial Balances given above and prepare the adjusted journal entries that cause the changes in account balances.

B. You are also required to include an explanation (narration) as part of each adjusting entry.

Trial Balance

Trial Balance

Adjusted Trial Balance

Adjusted Trial Balance

Solution:

Read more…