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

Question 31:

• JAMB 2012

The LIFO method has an advantage over FIFO in that stocks are valued at

A. Previous prices
B. Current prices
C. Average rates
D. Flat rates

Question 32:

• JAMB 2013

What type of stock valuation would a vegetable seller adopt in valuing it's product?

A. LIFO
B. FIFO
C. Simple average
D. Weighted average

Question 33:

• JAMB 2014

2/3 Purchases 900 books at #1,000 each
4/3 Purchases 590 books at # 950 each
15/3 Sales 300 books at #900 each
Determine the cost of goods sold using FIFO

A. #285,000
B. #300,000
C. #570,000
D. #600,000

Question 34:

• JAMB 2014

2/3 Purchases 900 books at #1,000 each
4/3 Purchases 590 books at # 950 each
15/3 Sales 300 books at #900 each
Calculate the cost of goods available for sale using LIFO

A. #801,000
B. #1,100,500
C. #1,160,500
D. #1,175,500

Question 35:

• JAMB 2014

Given:
Sales #180,000
Stock 1/1 # 25,000
Purchases #110,000
Sales returns # 1000
Purchases returns # 1,500
Gross profit # 58,000
Determine the value of stock as at 31st December

A. #8000
B. #9,500
C. #12,500
D. #15,500