Prepare a store ledger account from the following transactions using (i) LIFO method; (ii) The weighted average method in May, 2019:

Here’s the table transcribed from the image:

2019	May		Units	Price/Tk.
	1	Balance in hand	300	2.00
	2	Received	200	2.20
	4	Issued	150
	6	Received	200	2.30
	11	Issued	150
	19	Issued	200
	22	Received	200	2.40
	27	Issued	150

Ans:

Sure! Let’s prepare the store ledger account for the transactions using both the LIFO and Weighted Average methods for May 2019.

LIFO Method

LIFO (Last-In, First-Out) assumes that the last items received are the first ones issued.

Store Ledger Account using LIFO

Date	Particulars	Units	Rate	Amount	Balance (Units)	Balance (Rate)	Balance (Amount)
May 1	Balance	300	2.00	600.00	300	2.00	600.00
May 2	Received	200	2.20	440.00	500		1040.00
May 4	Issued	150	2.20	330.00	350		710.00
May 6	Received	200	2.30	460.00	550		1170.00
May 11	Issued	150	2.30	345.00	400		825.00
May 19	Issued	200	2.30	460.00	200		365.00
May 22	Received	200	2.40	480.00	400		845.00
May 27	Issued	150	2.40	360.00	250		485.00

Weighted Average Method

Weighted Average calculates a new average cost per unit after each purchase.

Store Ledger Account using Weighted Average

Date	Particulars	Units	Rate	Amount	Balance (Units)	Balance (Rate)	Balance (Amount)
May 1	Balance	300	2.00	600.00	300	2.00	600.00
May 2	Received	200	2.20	440.00	500	2.08	1040.00
May 4	Issued	150	2.08	312.00	350	2.08	728.00
May 6	Received	200	2.30	460.00	550	2.16	1188.00
May 11	Issued	150	2.16	324.00	400	2.16	864.00
May 19	Issued	200	2.16	432.00	200	2.16	432.00
May 22	Received	200	2.40	480.00	400	2.31	912.00
May 27	Issued	150	2.31	346.50	250	2.31	577.50

These tables should help you visualize the inventory accounting using both methods for May 2019.