D Company, a dealer in cosmetics, records its inventory under first-in-first out method, so as to minimize accumulation of outdated stock. The opening stock as on September 01, 2011 is 150 units at the rate of Rs. 20 per unit. The purchases and sales made during the month are:
Purchases: ‌ ‌
Date No.of‌units Cost‌price‌per‌unit
04.09.2011 200 Rs.25
14.09.2011 100 Rs.22
Sales: ‌ ‌
Date No.of‌units ‌
03.09.2011 100 ‌ ‌
10.09.2011 150 ‌

with effect from September 01,2011, the company decided to change the method of inventory valuation from the FIFO method to LIFO method. The change in the value of inventory as on September 30, 2011 consequent upon the change in the method of valuation is:

Question

Examsnet · Accepted Answer

Correct Answer is :   Decrease in the value of closing stock by Rs. 250

CA CPT Model Test Paper 9 with solutions for online practice