Practice Test

under inflationary conditions ,which of the method will show lowest value of cost of goods sold ?

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 liter 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 . The profit & loss on June 30 using FIFO method of inventory costing is

A company follows weighted average cost method for the valuation of its inventory. The details of purchase and issue of raw material pertaining to the company during the week April 01, 2006 to April 07, 2006 are as follows :- Date : April 01, Particulars : Opening stock , Purchase units : 50 units , Issued units :-- Rate per unit (Rs.44 ; , Date : April 02, Particulars : - , Purchase units : 100 units , Issued units :-- Rate per unit (Rs.47 , Date : April 04, Particulars :- , Purchase units : -- , Issued units :50, Rate per unit (Rs):-- . The value of inventory at the end of the week under weighted average method is