Methods Of Cost Determination Using Fifo Lifo And Simple Average - Accountsprinciplesofaccounts Jamb Past Questions and Answers

Question 16 :

• JAMB 2009

Use the information below to answer questions
Jan. 1 Received 1,000 units at N10 each
Jan. 2 Received 2,000 units at N12 each
Jan. 3 Issued 1,500 units
Jan. 4 Received 1,000 units at N11 each
Jan. 5 Issued 1,000 units
What is the value of closing stock using simple average?

A. N11,500
B. N17,000
C. N16,500
D. N28,500

Question 17 :

• JAMB 2009

Which of the following methods gives a conservative closing stock value during a period of rising prices?

A. LIFO
B. FIFO
C. Simple average
D. Periodic simple average

Question 18 :

• JAMB 2010

If a company values its stock in the period of rising prices using LIFO method, there is a tendency for it to?

A. Have a higher cost of goods sold
B. Have a higher gross profit
C. Pay higher gross profit
D. Have a higher value for closing stock

Question 19 :

• JAMB 2011

Use the information above to answer questions 19 and 20.
July 30 Closing stock 100 units at N90
July 8 Purchased 200 units at N95
July 10 Sold 160 units
July 17 Returned 80 faulty units purchased at N95
July 18 Purchased 200 units at N105
July 20 Sold 180 units
July 28 Purchased 200 units at N110
July 29 Sold 120 units
July 30 Sold 100 units
How many units were at hand as at July 30?

A. 80
B. 100
C. 60
D. 160

Question 20 :

• JAMB 2011

The cost method of charging goods to branch is used where?

A. Branch stock adjustment account is in use
B. The retention of branch trading account is in addition to the cost of goods sold
C. Goods are sent without invoice or any source documents
D. Goods are of a perishable nature on which a pre-determined price is inapplicable