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

Question 26 :

• JAMB 2015

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

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

Question 27 :

• JAMB 2015

Using LIFO method of stock valuation, analyze the issue quantities and their prices

A. 260 units at N1.50
B. 700 units at N1.50
C. 200 units at N1.50 and 500 units at N1.00
D. 350 units at N1.50 and 350 units at N1.00

Question 28 :

• JAMB 2015

Use the information below to answer this question.
Jejelaye Plc stock records for 2009 was given below:
Jan 1 received 100 units at N1.00
Jan 8 received 260 units at N1.05
Jan 20 issued 700units at .........
Feb 3 received 400 units at N1.15
What will be the issued price of 700 units, using simple average method

A. N1.183
B. N1.025
C. N1.00
D. N1.05

Question 29 :

• JAMB 2017

In the period of rising prices, which method of stock valuation is most appropriate?

A. Last in First Out
B. Weighted average
C. First in First Out
D. Simple average

Question 30 :

• JAMB 2017

An advantage of FIFO method of stock valuation is that

A. It serves-as a control during inflation
B. It is calculated at the end of the year
C. It is progressive in nature
D. Its flow of cost is in sequence with the flow of stock.