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
Standard Cost and Standard Costing To effectively control the costs of a certain organization, we require a yard stick to measure the real performance against. Traditionally,
Cowboy Constructions employs a full-time driver and incurs costs for a vehicle to deliver paperwork between each of their building sites. Select Couriers has offered to carry out t
Imperial Sandwich Plc is to be established shortly. The founders are considering their options with regard to capital structure. A total of £5 m will be required to establish the b
The Cutting Department of the Rock Island Custom Cabinetry Corporation (a process costing production) had no work in process at the beginning of the period, 12,000 units were compl
Expenses paid in previous of their use or consumption is termed as prepaid expenses. At the ending of the year, a portion of the payment keeps unconsumed and is treated like an ass
A soft drink maker wants to expand into a neighboring country. They want the product bottled in that country to avoid political issues and to enhance the local image of the produc
High - Low Method of Cost Estimation Now, cost estimation is based upon the relationship between past level and past cost of activity. Variable cost is based on the relationsh
During the dinner hour, the distribution of the inter-arrival time of customers at Burger Barn is predictable to be as follows: Inter-arrival Time Probabi
Brandywine Homecare, a not-for-profit business, had revenues of $12 million in 2011. Expenses other than depreciation totaled 75 percent of revenues, and depreciation expense was $
critically explain cost accounting as 1. a service activity 2. a descriptive/analytical discipline 3. an information system
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