Dear Chartered Accountants,
Jain enterprises is a leading distributor of petrol,detail inventory of petrol in hand taken when the books are closed at the end of each month for the end month of June 21 the following information:
1. sales for the month of June 2021 was rupees 30,40,000
2. general overheads cost ruppes 4 lakhs
3. inventory and beginning 10000 litres @ 92 per litre,June 30 2021,10,000 litres @ 95 per litre
4. closing inventory 13000 litres..
compute the following by fifo method
1. valuation of inventory on 30th June 21
2. amount of cost of good sold for June 21
3.profit / loss for the month of june 2021...
please explain this problem with explanation
1. Valuation of Inventory on 30th June
Total Value 12 26 000
2. Cost of Goods sold ( FIFO Method).
= 6,44 ,000
3. profit for the month of June 21=
19 , 96 , 000
CAclubindia
