The following details are available of raw material of a manufacturing unit: 1-5-2024 Opening Inventory100 units @15 per unit 2-5-2024 Purchases300…

(a) Weighted Average basis Calculation of the value of Inventory as on 31-5-2024 Date Receipts Issues Balance Units Rate Amount (₹) Units Rate Amount Units Rate Amount (₹) 1-5-24 100 15 1,500 2-5-24 300 19.5 5,850 400 18.375 7,350 5-5-24 250 18.375 4593.75 150 18.375 2756.25 16-5-24 500 21.9 10,950 650 21.09 13,708.5 21-5-24 100 21.09 2,109 550 21.09 11,599.5 25-5-24 450 21.09 9,490.5 100 21.09 2,109 Therefore, the value of Inventory is as follows: Value as per Weighted Method as on 31-5-2024:100 units @21.09 = 2,109 (b) First-in-First out basis Calculation of the value of Inventory as on 31-5-2024 Date Receipts Issues Balance Units Rate Amount (₹) Units Rate Amount Units Rate Amount (₹) 1-5-24 100 15 1,500 2-5-24 300 19.5 5,850 100 15 1,500 300 19.5 5,850 5-5-24 100 15 1,500 150 19.5 2,925 150 19.5 2,925 16-5-24 500 21.9 10,950 150 19.5 2,925 500 21.9 10,950 21-5-24 100 19.5 1,950 50 19.5 975 500 21.9 10,950 25-5-24 50 19.5 975 400 21.9 8,760 100 21.9 2,190 Therefore, the value of Inventory as on 31-5-2024 will be as follows: Value of Inventory as per FIFO Method:100 units @21.9 = 2,190 Working Note: (i) Per unit cost of raw material purchased on May, 2,2024 = (300x 18 +300 +150) /300 = 19.5 (ii) Per unit cost of raw material purchased on May, 16,2024 = (500x 21 +300 +150) /500 = 21.9 Note: (a) Freight and unloading charges are directly attributable cost and are necessary to bring the inventory into present location and condition hence are included in the cost of inventory. (b) Warehouse rent are indirectly attributable expenses and are not considered as cost of inventory. (c) Administrative expenses are indirectly attributable expenses and do not usually add any specific value to inventories and hence excluded from the cost of inventory.