Methods of cost determination using FIFO, LIFO and simple average - Jamb Accounts - Principles of Accounts Past Questions and Answers

Question 1:

• JAMB 1994

The term "accounting period" is used to refer to the

A. Time span during which taxes are paid to the inland revenue board
B. Budget period, usually one year, relied on by the accountant
C. Time span, usually one year, covered by financial statement
D. Period within which debtors are expected to settle accounts

Question 2:

• JAMB 1997

Which of the following stock valuation methods is suitable under inflationary conditions?

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

Question 3:

• JAMB 2000

The most appropriate basis for apportioning inventory holding cost among departments is to use the value of?

A. Purchases
B. Opening stock
C. Closing stock
D. Average stock

Question 4:

• JAMB 2001

WHAT IS THE STOCK VALUATION METHOD USED?

A. LAST IN FIRST OUT
B. FIRST IN FIRST OUT
C. AVERAGE COST
D. WEIGHTED AVERAGE

Question 5:

• 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