passwella.
Menu

JAMB Principles of Accounts 2005 Question 19

Question 19

Stock Valuation

Use the information below to answer questions 19 and 20.
Date | Particulars | Quantity (Units) | Unit Price (₦)
Jan. | Received | 100 | 2.00
Feb. | Received | 110 | 2.50
March | Issued | 80 |
April | Received | 200 | 3.00
May | Issued | 100 |
Determine the closing stock under LIFO method.

  1. A.₦575
  2. B.₦500
  3. C.₦375
  4. D.₦275
Show the answer and explanation

Answer: A (₦575)

Explanation

March issue (80) comes from Feb, leaving 30 @ 2.50; May issue (100) comes from April, leaving 100 @ 3. Closing stock = 100 × 2 + 30 × 2.50 + 100 × 3 = 200 + 75 + 300 = ₦575.