Reference no: EM132582951

(1) Following information is related to the stock ledger of Moon Ltd.

No of Units     Unit Price                     Total value

Jun 5 - Opening stock 100                  Rs. 4000

Jun 12 - Received 300                     Rs. 50

Jun 19 - Issued 80

Jun 23 - Received 100                        Rs. 60

Jun 28 - Issued 400

Required:

Question 1: Calculate the closing stock value based on the following methods,

a. First In First Out (FIFO)

b. Weighted Average

(2) The following information is extracted from the book of Sun Ltd

                                            Products A            B                            Cost Driver Unit (Rs.)

Price per unit                           250            400                              -

Direct material cost per unit          25                40                           -

Direct wages per unit                   15                   25                          -

No of purchase orders                   200                300                       250

No of component used                  100,000         120,000                       2

No of units                                    5,000            6,000                        4

No of sales orders                           300                  200                    200

Sales (Rs.)                                     1,250,000           2,400,000             0.1

No of service calls                              200                    100                     5

Required:

Question 2: Prepare the income statement for product A and B by using the ABC method.