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
(a) The value of a share of Rio National Equity on 31 December 2002, using the Gordon growth model and the capital asset pricing model, can be determined as follows. Required
Raw Materials: Manufacturing Overhead Bal 1/1: 36,000 Credits: ? Debits: 383,000 Credits: ? Debits: 470,000 Bal: 12/3: 156,000 Work in Process: Bal 1/1: 73,000 Credits: 770,000
Which of the following are easy to trace to individual jobs?: A. direct materials and overhead B. direct materials and direct labor C. direct labor and overhead
I just do not know which form those numbers should go in. I would canculate the results myself. Thanks John and Ellen Brite are married and file a joint return. They have no depend
Managers need financial information to help them make decisions, communicate important information about their organization, and demonstrate fiscal responsibility to stakeholders.
A company started with $0 in direct materials, purchased $5,000 of materials, and ended with $300 in materials. Direct labor equaled $4,000. The applied overhead for the period was
Determine the factors that distinguish profit calculated according to (a) marginal costing and (b) absorption costing principles.
Job Costing This is a costing method that is applied when a job or cost unit is relatively of small size, is undertaken to fit the customer's specifications and is of compara
Cost Classifications and Estimation Cost classification may be defined like 'the arrangement of cost items in a logical sequence having concern to their nature and reason to b
list and explain all the procedures of material control
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