FIFO LIFO & AVCO

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
I going through my revision companion getting ready for tommorrow exam and started doing the Stock when FIFO LIFO & AVCO please can someone remind me what they mean and what i do with them? good luck to all in the intermediate exam tommorrow.

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:FIFO LIFO & AVCO

    (This is BlobbyH's favourite subject isnt it Robert???? teehee)

    Right

    FIFO - First in first out
    LIFO - Last in first out
    AVCO - Average stock movement

    This is an accounting method of valuing stock rotation, it bears no resemblence on the physical movement of stock, but the principle of one of the above has to be consistently followed within the accounts.
    (I believe LIFO cannot be used in UK, check that)

    FIFO would be where your earliest receipt of goods, is used to cost the outward flow, and LIFO means that the most recent batch / unit cost, would be used to cost the outflow.

    AVCO, is where the inflows are added together, and an average figure is calculated, in order to value the outflowing stock.

    Hope that helps

    Paul.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:FIFO LIFO & AVCO

    Thanks Paul that has help alot
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:FIFO LIFO & AVCO

    No problem - good luck
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:FIFO LIFO & AVCO

    Bloody cheek! I only just read that, Paul! LOL!

    :evil: :evil: :evil: :evil: :evil:

    Robert

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