1. **State the problem:** Calculate the cost of materials used in production using LIFO (Last In First Out) method and determine the value of remaining stock. 2. **List purchases and usage:** - Purchases: - 01/08: 142 units @ 10000 each - 03/08: 159 units @ 12000 each - 15/08: 162 units @ 15000 each - 25/08: 100 units @ 18000 each - Units used in production: - 05/08: 163 units - 10/08: 120 units - 20/08: 174 units - 30/08: 101 units 3. **Calculate total units used:** $$163 + 120 + 174 + 101 = 558$$ units used. 4. **Apply LIFO usage to inventory:** We use the latest purchases first to calculate cost: - Start with 25/08 purchase: 100 units @ 18000 → uses 100 units - Remaining units used: $$558 - 100 = 458$$ - Next latest: 15/08 purchase: 162 units @ 15000 → uses all 162 units - Remaining units used: $$458 - 162 = 296$$ - Next: 03/08 purchase: 159 units @ 12000 → uses all 159 units - Remaining units used: $$296 - 159 = 137$$ - Next oldest: 01/08 purchase: 142 units @ 10000 → use 137 units - Remaining units used: $$137 - 137 = 0$$ 5. **Calculate cost of materials used:** $$\text{Cost} = (100 \times 18000) + (162 \times 15000) + (159 \times 12000) + (137 \times 10000)$$ $$= 1,800,000 + 2,430,000 + 1,908,000 + 1,370,000$$ $$= 7,508,000$$ 6. **Determine remaining stock:** - Original 01/08 purchase: 142 units, used 137, so left 5 units @ 10000 - Remaining stock units: - 01/08: 5 units @ 10000 - No units left in later purchases 7. **Value of remaining stock:** $$5 \times 10000 = 50,000$$ **Final answers:** - Cost of materials used = 7,508,000 - Value of remaining stock = 50,000