Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Example of LIFO, FIFO and Weighted Average Method
Suppose the following purchases were made in ABC Ltd as like:
Date of purchase Units purchased Price/unit
1st January 500 100
2nd January 600 200
3rd January 800 400
Units used on date 4th January are 900. Find out the cost/value of units employed by using of FIFO, LIFO and weighted average.
Required:
Find out the cost of units employed and the value of the closing stocks by utilizing LIFO and Weighted Average and FIFO.
Solution
1. FIFO
Cost of units used
Date
Units
Unit price
Total cost
Jan 1
500
100
50,000
Jan 2
400
200
80,000
900
130,000
Closing stock is valued like:
2. LIFO
Jan 3
800
320,000
20,000
340,000
Closing stock is valued as
100,000
1,000
Value of closing stocks
150,000
3. Weighted average
Date Units Unit price Total Cost of Issues
0 - 0 900 257.8 232,105.20
Closing Stock Valuation = (Goods Available - Goods Issued) x Unit Price =
Unit Price = [500(100) + 600 (200) + 800 (400)]/1,900
=490,000/1,900
= 257.8
Labor Transactions (i) Wages Paid in cash (ii) Wages incurred like a) Direct labor or else b) Indirect labor In the Financial Books In
Marginal Costing and Marginal Cost Marginal Costing is an optionally method of costing to absorption costing , In marginal costing, merely variable costs are charged like a
i. Identify the organization ii. Identify the stakeholders iii. Give the major requirements for the IT application iv. Reflect on how difficult it was to do the require
What are the five accounts used in adjusting entry for periodic inventory at the end of the year?
Beaver Company (a multi-product firm) produces 5,000 units of Product X each year. Each unit of Product X sells for $8 and has a contribution margin of $5. If Product X is disconti
Example of ABC System Assume an example, such the cost pool for the ordering activity totaled of Ksh.100, 000 and such there were 10,000 orders the cost driver. Therefore all
Q. Calculate break-even level of sales volume and revenue? Z-Boxes sell for £299 and their variable production cost is £99. Research and development, and fixed production overh
Shirley and Ken are in partnership, trading in the construction industry. The year end for the partnership business is 30 June. You are the Assistant Accountant and have been as
Moore Corporation follows a policy of a 10% depreciation charge per year on all machinery and a 5% depreciation charge per year on buildings (the corporation uses the nearest full
diff between cost estimation and cost accounting
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd