FIFO Method — Stock Valuation Statement
Product: PAN MASALA | Value of Closing Stock (FIFO Method)
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Part 1 — FIFO Working Summary (Item-wise)
Product: PAN MASALA
| Layer / Particulars | Quantity | Rate (₹) | Amount (₹) | Remarks |
|---|---|---|---|---|
| Opening Stock (Layer 1 — oldest) | 28,510 | 49.22 | 14,03,262.20 | Carried forward / Beginning balance |
| Purchase (Layer 2) | 1,17,040 | 49.22 | 57,60,708.80 | New purchase at same rate |
| Total Available | 1,45,550 | — | 71,63,971.00 | Sum of all layers |
FIFO Consumption Against Sales / Issues
| Consumed From | Quantity Issued | Rate (₹) | Amount (₹) | Remarks |
|---|---|---|---|---|
| Layer 1 — Opening Stock (oldest first) | 28,510 | 49.22 | 14,03,262.20 | Fully exhausted under FIFO |
| Layer 2 — Purchase (remaining consumed) | 82,482 | 49.22 | 40,59,764.04 | Partial consumption from purchase |
| Total Sales / Issues | 1,10,992 | — | 54,63,026.24 | Total consumed under FIFO |
Remaining Closing Stock Layers
| Remaining Layer | Quantity | Rate (₹) | Amount (₹) | Remarks |
|---|---|---|---|---|
| Layer 2 — Purchase (balance remaining) | 34,558 | 49.22 | 17,00,944.76 | Latest remaining layer (FIFO closing) |
| Closing Stock Total | 34,558 | 49.22 | 17,00,944.76 | Final FIFO closing valuation |
✓ Verification:
Opening (14,03,262.20) + Purchase (57,60,708.80) = 71,63,971.00
| Issues (54,63,026.24) + Closing (17,00,944.76) = 71,63,971.00
| BALANCED ✓
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Part 2 — Final Stock Valuation Statement (FIFO Method)
Product: PAN MASALA | UOM: Nos / Pcs
| Particulars | Receipt (Opening + Purchase) | Issue (Sales / Consumption) | Closing Balance | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Quantity | Rate (₹) | Amount (₹) | Quantity | Rate (₹) | Amount (₹) | Quantity | Rate (₹) | Amount (₹) | |
| Opening Stock | 28,510 | 49.22 | 14,03,262.20 | 28,510 | 49.22 | 14,03,262.20 | — | — | — |
| Purchase | 1,17,040 | 49.22 | 57,60,708.80 | 82,482 | 49.22 | 40,59,764.04 | — | — | — |
| TOTAL | 1,45,550 | — | 71,63,971.00 | 1,10,992 | 98.44 | 54,63,026.24 | 34,558 | 49.22 | 17,00,944.76 |
TOTAL RECEIPT VALUE
₹ 71,63,971.00
TOTAL ISSUE VALUE
₹ 54,63,026.24
CLOSING STOCK VALUE
₹ 17,00,944.76
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Part 3 — Exceptions / Review Notes
- 1 Same Rate Across Layers: Both Opening Stock and Purchase carry the same rate of ₹49.22. Under FIFO, this means the consumption order does not affect total valuation — the weighted-average rate equals the FIFO rate for this item in this period.
- 2 Issue Rate Shows 98.44 in Source Data: The source Excel "Total" row shows an issue rate of ₹98.44 (which appears to be the simple sum 49.22 + 49.22 = 98.44 rather than a true per-unit rate). The actual per-unit FIFO issue rate is ₹49.22 throughout, since all layers share the same rate. This figure should be reviewed.
- 3 Opening-to-Closing Continuity: Only one financial year's data is present. There is no prior-year closing balance available for cross-verification. If multi-year data becomes available, closing stock of ₹17,00,944.76 should carry forward as the next year's opening balance.
- 4 UOM Not Explicitly Stated: The source file does not explicitly mention the Unit of Measurement. "Nos / Pcs" has been assumed. This should be confirmed with the data source.
- 5 No Negative Stock Detected: All closing quantities are positive. No stock-out or negative balance issues found for this item.
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Assumptions Used
The following assumptions were applied during preparation:
- FIFO (First-In, First-Out) method has been strictly followed — oldest stock consumed first.
- Opening Stock is treated as the oldest inventory layer (Layer 1).
- Purchase is treated as the next chronological layer (Layer 2).
- Sales / Issues have been first adjusted against Opening Stock, then against Purchase balance.
- Unit of Measurement (UOM) is assumed as "Nos / Pcs" as it was not specified in the source data.
- All values are rounded to 2 decimal places in accordance with standard accounting practice.
- Indian Rupee (₹) is used as the currency.
- Since only one financial year's data was provided, no cross-year carry-forward verification was performed.
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Disclaimer
⚠ Important Notice
This resource is for educational purposes only and does not constitute legal, financial, or professional accounting advice. The FIFO calculations presented herein are based solely on the data provided in the uploaded Excel file. Users are advised to verify all figures independently with qualified professionals before relying on them for statutory filings, audits, or management decisions.