The purchased and issued amounts of material Y in the month of March 2008, are as follows ||| |---|---| |Mar 4-|Purchased 600 units @ Rs. 40 per unit| |Mar - 20|Purchased 900 units @ Rs. 45 per unit| |Mar - 25|Issued 800 units| Calculate the value of closing stock when FIFO method is used.

 It is Rs 31,500 - Mar 4 - Purchase 600 units @ Rs 40 per unit - 600 units X  Rs 40 =  Rs 24,000   Mar 20 - Purchase 900 units @ Rs 45 per unit - 900 units X Rs 45 = Rs 40,500   Mar 25 - Issue 800 units   As First In, First Out method is used , 600 units will be valued at Rs 40 per unit.                                                               200 units will be valued at Rs 45 per unit                                                                600 units X Rs 40 = Rs 24,000                                                                200 units X Rs 45 = Rs  9,000              Closing Stock  = Total Purchase Price - Total Issue Price                                = ( 24,000 + 40,500 ) - ( 24,000 + 9,000 )                                =  64,500 - 33,000 = Rs 31,500