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
Ask quCalculate the standard production cost per unit and standard profit per unit using Absorption costing principles. ii. Prepare a profit statement for January and February (se
a machine is purchased on july 1 2009 for $181,500. It has an expected useful life of 11 years and no salvage value. After five years, the machine is sold for $98,000 cash. What is
Farmer Dorr figures that her fixed costs are $2,000, and the relevant portion of her total cost curve is: Thousands of
Flexible budgeting is a reporting system wherin the
Administration Costs Budget This represents the costs of all administration expenses. Every department or budget centre will be responsible for the preparation of its own bud
Weighted Average Method This way is a perpetual weighted average system whereas the issue price is recalculated after one of receipt of stocks taking into accounts both money
The total demand (marginal benefit) curve for visiting Yosemite is as follows: Price = 5000-10*NumberOfTrips -10*TonsOfVisibleTrash. a. Suppose the quantity of trash=100 tons. D
Mandy Building Contractors Ltd signed a fixed-price contract to build a bridge for Nelly Ltd for $110 million on 1 July 2012. Contract costs are estimated as follows:
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
1. Develop a list of tasks that a newly appointed CFO would be responsible for, including relevant reports they will access and review and the schedule for when this would occur.
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