Data for questions 5 and 6
Aberdeen Ltd holds stocks of Material X that it uses in production. Over the last month receipts and
issues were as follows:
Opening Balance
Receipts
Issues
5 May
200 at $5
7 May 400
12 May
300 at $4.50
23 May 400
22 May
100 at $6
30 May 200
29 May
400 at $5.50
200 at $7
5. If a FIFO stock valuation method were used, the value of stocks at the month end would be:
A $1,000
B $1,100
C $1,200
D $1,400
6. If a LIFO stock valuation method were used, the cost of material X issued to production in the
month would be:
A $5,150
B $5,350
C $5,450
D $5,550
100 \times \$5
100 \times \$4.5 + 100 \times \$5
100 \times \$5 + 100 \times \$6 = 1100
