Page 92 - DCOM202_COST_ACCOUNTING_I

Cost Accounting – I

Notes 25. What is meant by the weighted average method of valuing stores issues? How is it different
from the simple average method? Explain the statement pointing out the elements for
which estimates have to be made.
26. Explain the different methods of materials issue and show their relative merits and
demerits.
27. Select a manufacturing concern and outline a system of materials control for it. Give
specimen of various forms you will require.

Answers: Self Assessment

1. optimum level of inventory 2. work in progress
3. lower prices 4. capital on materials
5. True 6. False
7. False 8. True
9. Material Return Note 10. Stores Ledger Account

11. Bin Card 12. purchase order
13. Decimal method 14. Stock verification
15. perpetual inventory

4.7 Further Readings

Book Richard G. Schroeder, Myrtle W. Clark, Myrtle W. Clark, Jack M. Cathey, Financial
Accounting Theory and Analysis: Text Readings and Cases, John Wiley & Sons Inc

Online links www.futureaccountant.com
www.managementstudyguide.com

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