Stock Valuation - Jamb Accounts - Principles of Accounts Past Questions and Answers

Question 6:

• JAMB 2002

Which method of pricing can be used satisfactorily in either a rising or falling price situation?

A. Standard price
B. Marketing price
C. FIFO
D. Average method

Question 7:

• JAMB 2002

Use the information below to answer this question
Date.............QTY. .....RATE........TOTAL
...............(Units).....N...........N
January 2nd.....500........25..........12500
March 7th.......250........28..........7000
Issues were made as follows:
Date............QTY. (uNITS)
January 9th .....200
February 14th ...200
March 11th ......200
The closing stock on March 11th by LIFO valuation is

A. N4200
B. N2700
C. N4500
D. N3900

Question 8:

• JAMB 2002

Use the information below to answer this question
Date.............QTY. .....RATE........TOTAL
...............(Units).....N...........N
January 2nd.....500........25..........12500
March 7th.......250........28..........7000
Issues were made as follows:
Date............QTY. (uNITS)
January 9th .....200
February 14th ...200
March 11th ......200
The value of closing stock as at February 14th by simple average method is

A. N3900
B. N2500
C. N4100
D. N2700

Question 9:

• JAMB 2003

The stock valuation data is important because it enables management to?

A. Separate debtors from creditors
B. Determine the cost of stock at the end of business
C. Determine the cost of stock at the beginning of business
D. Determine the total cost of goods purchased

Question 10:

• JAMB 2003

Use the information to answer this question
Date.............Details........................
Feb........1 Purchased 400 units at N1.00 each
,, ........5 Purchased 200 units at N2.00 each
,,.........10 Purchased 200 units at N300 each
,, .........15 Issued 320 units
,,..........20 Issued 200 units at N4,00 each
,,..........25 Issued 120 units
Calculate the price per unit of closing stock using the periodic weighted average method.

A. N3.20
B. N3.00
C. N2.20
D. N2.00