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
Inventory, Supplies and Prepaid Expenses You can well understand the requirements for carrying inventory. So as to carry on operations unhindered we require to have sufficien
Sam Edwards has been the accounting manager for Jade Manufacturing in a highly competitive international market for ten years. Jade Manufacturing produces heavy equipment for two m
Determine why JIT, TQM and AMTs may not always be entirely compatible with the practice of standard costing.
Wayne Company's beginning and ending inventories for the month of June were as follows: June 1 June 30 Work in progress $145,000 171,000 Finished Goods 85,000 78,000 Production
Find Out Overhead Application Rate The given is the budget of Superb Engineering Works for the 2002 year Factory overheads Kshs 62,000
Stopover industries ltd, a recently incorporated company plans to go into production next year. the following standard cost matrix has been assembled for one of the products it pro
Conceptualizing Job Costing Start to develop an understanding of job costing by thinking about the simple illustration. Jack Castle owns an electrical constricting company, Cas
Q. Is there barely one way to conduct fca? Ans. No. It is significant for each area to put the FCA process in perception with its waste management goals. Every community w
You have recently graduated from VU and are now working for a small accounting firm. The firm recently purchases MYOB software for internal use. Upon learning that you had learnt M
A foreign company plans to clear several dozen acres of ecologically valuable mangrove swamp in Vietnam for the creation of a shrimp aquaculture facility. This decision will creat
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