From the following particulars prepare Stores Ledger Account under F.I.F.O. method. | Date | Particulars | | --- | --- | | 1.1.2017 | Opening stock 200 units @ ₹30 | | 2.1.2017 | received 300 units @ ₹40 | | 4.1.2017 | issued 250 units | | 6.1.2017 | received 100 units @ ₹20 | | 7.1.2017 | received 50 units @ ₹30 | | 8.1.2017 | received 300 units @ ₹30 | | 10.1.2017 | issued 200 units | Show the closing stock.

> > [!TLDR] > FIFO issues oldest stock first; closing stock = 500 units worth ₹14,500. > > Under the **FIFO (First-In-First-Out)** method (CHSE Odisha +2 Cost Accounting), materials are issued in the order they were received, so the earliest lots are exhausted first and the closing stock is valued at the latest prices. > > **Stores Ledger Account (FIFO)** > > | Date | Receipts (Qty, Rate, ₹) | Issues (Qty, Rate, ₹) | Balance (Qty, Rate, ₹) | > | --- | --- | --- | --- | > | 1.1.2017 | Opening stock | — | 200 @ 30 = 6,000 | > | 2.1.2017 | 300 @ 40 = 12,000 | — | 200 @ 30 = 6,000; 300 @ 40 = 12,000 (500 units = 18,000) | > | 4.1.2017 | — | 200 @ 30 = 6,000; 50 @ 40 = 2,000 (250 units = 8,000) | 250 @ 40 = 10,000 | > | 6.1.2017 | 100 @ 20 = 2,000 | — | 250 @ 40 = 10,000; 100 @ 20 = 2,000 (350 units = 12,000) | > | 7.1.2017 | 50 @ 30 = 1,500 | — | 250 @ 40 = 10,000; 100 @ 20 = 2,000; 50 @ 30 = 1,500 (400 units = 13,500) | > | 8.1.2017 | 300 @ 30 = 9,000 | — | 250 @ 40 = 10,000; 100 @ 20 = 2,000; 50 @ 30 = 1,500; 300 @ 30 = 9,000 (700 units = 22,500) | > | 10.1.2017 | — | 200 @ 40 = 8,000 | 50 @ 40 = 2,000; 100 @ 20 = 2,000; 50 @ 30 = 1,500; 300 @ 30 = 9,000 (500 units = 14,500) | > > **Workings for the issues:** …

From the following particulars prepare Stores Ledg – Class 12 Cost Accounting

Question 55 of 78

From the following particulars prepare Stores Ledger Account under F.I.F.O. method.

Date	Particulars
1.1.2017	Opening stock 200 units @ ₹30
2.1.2017	received 300 units @ ₹40
4.1.2017	issued 250 units
6.1.2017	received 100 units @ ₹20
7.1.2017	received 50 units @ ₹30
8.1.2017	received 300 units @ ₹30
10.1.2017	issued 200 units

Show the closing stock.

ChseodishaCHSE Odisha Plus Two (Class 12) Commerce Board 2022Subjective· 5mImportance★★★★★est

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FIFO issues oldest stock first; closing stock = 500 units worth ₹14,500.

Under the FIFO (First-In-First-Out) method (CHSE Odisha +2 Cost Accounting), materials are issued in the order they were received, so the earliest lots are exhausted first and the closing stock is valued at the latest prices.

Stores Ledger Account (FIFO)

Date	Receipts (Qty, Rate, ₹)	Issues (Qty, Rate, ₹)	Balance (Qty, Rate, ₹)
1.1.2017	Opening stock	—	200 @ 30 = 6,000
2.1.2017	300 @ 40 = 12,000	—	200 @ 30 = 6,000; 300 @ 40 = 12,000 (500 units = 18,000)
4.1.2017	—	200 @ 30 = 6,000; 50 @ 40 = 2,000 (250 units = 8,000)	250 @ 40 = 10,000
6.1.2017	100 @ 20 = 2,000	—	250 @ 40 = 10,000; 100 @ 20 = 2,000 (350 units = 12,000)
7.1.2017	50 @ 30 = 1,500	—	250 @ 40 = 10,000; 100 @ 20 = 2,000; 50 @ 30 = 1,500 (400 units = 13,500)
8.1.2017	300 @ 30 = 9,000	—	250 @ 40 = 10,000; 100 @ 20 = 2,000; 50 @ 30 = 1,500; 300 @ 30 = 9,000 (700 units = 22,500)
10.1.2017	—	200 @ 40 = 8,000	50 @ 40 = 2,000; 100 @ 20 = 2,000; 50 @ 30 = 1,500; 300 @ 30 = 9,000 (500 units = 14,500)

Workings for the issues: …

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Same / Similar Concept — real previous-year questions on the same or a closely similar concept, not this exact question.

CBSE 2024Set ANNUAL1 markMCQ
$Q. (f) FIFO method of pricing material issue is suitable in times of :$
(a) Rising prices
(b) Falling prices
(c) Steady prices
(d) Fluctuating prices
›Reveal solutionSolution
FIFO is suitable in times of falling prices — option (b).

FIFO (First-In-First-Out) issues material at the price of the earliest lot purchased. In a period of FALLING prices the earliest lots carry the highest prices, so:

Issues to production are priced at the older, higher rates.

Closing stock is left valued at the newer, lower (current) prices — a conservative, realistic stock value. …
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CBSE 2020Set ANNUAL1 markMCQ

Q. LIFO method is suitable when prices are

(a) stable

(b) fluctuating

(d) falling

›Reveal solution

LIFO suits a period of rising prices because it charges the latest (higher) cost to production — option (c).

How LIFO behaves as prices move

Price trend	Effect of LIFO on issues	Suitability
Rising	Latest high cost charged to production; cost reflects current market	Most suitable
Falling	Latest low cost charged; understates current cost	Less useful
Stable	FIFO and LIFO give the same result	No advantage
…

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CBSE 2019Set ANNUAL1 mark
$Q. Fill in the blank: FIFO method is suitable when prices are ______.$
›Reveal solutionSolution

FIFO is conventionally said to be suitable when prices are falling.

Under First-In-First-Out, materials are issued at the price of the earliest lot in stock. When purchase prices are falling over time, issues carry the older (higher) prices and the closing stock is left valued at the most recent (lower) prices — the usual textbook justification for recommending FIFO in a period of declining …

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CBSE 2019Set ANNUAL1 markMCQ
$Q. The department by which issue of materials is generally valued, is$
(a) Costing department
(b) Accounts department
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Issues of material are valued by the (a) Costing department.

The stores department physically receives and issues materials and keeps the bin card (quantities only). The costing (cost accounting) department maintains the priced stores ledger and applies the chosen pricing method (FIFO, weighted average, etc.) to value each issue. Hence the valuation …

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