Stock Valuation

Contents & notes: what this topic covers

Under Stock Valuation, the JAMB Principles of Accounts syllabus expects you to study:

• 7. Stock Valuation a. Meaning and purpose of stock valuation b. Methods of stock valuation e.g., FIFO, LIFO and simple average i c. Advantages and disadvantages of the methods i

Study notes & guidance

Study Stock Valuation using a recommended Principles of Accounts textbook that follows the JAMB syllabus. Work through the contents listed above one by one, make brief notes in your own words, and then practise as many questions on this topic as you can — in Principles of Accounts, understanding and steady practice matter far more than memorising. Use the objectives below as a checklist: if you can do each one confidently, you have mastered this topic.

Objectives — candidates should be able to

After studying Stock Valuation, you should be able to:

1. Determine the value of materials issued to production department using FIFO, LIFO and simple average;
2. Calculate the closing stock of materials or finished goods using FIFO, LIFO and simple average;
3. Compare the advantages and disadvantages of each method of stock valuation; and
4. Determine the effects of stock valuation on elements of income statement.

These objectives are from the official JAMB syllabus. Use them as a checklist — if you can do each one confidently, you have mastered this topic.

Source: official JAMB UTME Principles of Accounts syllabus (IBASS, jamb.gov.ng). Reproduced for study use. Last checked: 17 Sept 2026. Always confirm the current syllabus on the official portal.