Question

ACCT 232 Case in issue of materials : Prepare a Stores Ledger Account from the following information adopting FIFO method of pricing of issues of materials. May 1, Opening balance 2,000 units @ SR 20. May 5, Received from suppliers 3,000 units its cost SR 80,000 with 10% discount and 1,800; 1,200 fright in expenses and insurance, respectively. . May 8, Issue 3,500 units to Department A. May 10, Material requested form suppliers 2,500 units @ SR 26. May 15, Received from suppliers 3,000 units @ SR 22. May 20, Issue 2,000 units to Department B. May 22, Returned 1,000 units from Department A which issue on May 8. Department B to May 23, 500 units transferred from Department A. May 25, Receive the required quantity on 10 May. May 28, Returned 500 units to supplies from quantity received on May 15. May 29, Issue 2,000 units to Department A. May 30, A sudden inventory of the store found that, there is 200-unit deficit which was considered a natural deficit.

Answer 1

Stores Ledger Account
Date	Particulars	Units	Rate	Amount	Amount
May 1st	Opening balance	2000	20	40000	40000
May 5th	Received from suppliers net of trade discount	3000	23	72000
	Less: Fright expenses			-1800
	Less: Insurance expenses			-1200	69000
May 8th	Issues to Dept A	3500			-74500
May 10th	Material Requested from supplier	2500	26		65000
May 15th	Received from suppliers	3000	22		66000
May 20th	Issues to Dept B	2000			-47500
May 22nd	Goods returned which was issued on may 8th	1000	23		23000
May 23rd	Transferred from Dept B to Dept A	-	-	-	-
May 29th	Issued 2000 units to dept A	2000	26		-52000