Ecr June 2006

kazseera
kazseera Registered Posts: 87 Regular contributor ⭐
in AAT Level 3 (Level 6 in Scotland)
ARGHH i may sound a lil dumb!! but HOW do you work out what method theyve used on the stock card... please help

Comments

  • Cath Barrett
    Cath Barrett Registered Posts: 12 New contributor 🐸
    Stock methods

    There are only 3 to choose from. If they use FIFO (first in first out) then you can see that the price relates to the oldest receipt of stock. If they use LIFO (last in first out) then the most recent stock receipt price is used. AVCO (average cost) is always more than one cost added together so there will be a total of 2 sets of stock receipts in the balance section but only one cost price against it which will be the average of the two.

    Hope that makes some sense. Good luck.:thumbup:
  • Jentel
    Jentel Registered Posts: 60 Regular contributor ⭐
    The way i work it out is -

    The balance on the 16 May - £6,000 divide by 4,000kg= £1.50
    The Receipts on the 20 May - £12,800 divide by 8,000Kg=£1.60

    Your First Issue on 25 May of 5,000kg was made up of
    4,000kg @ £1.50 = £6,000
    1,000kg @ £1.60 = £1,600

    Total 5,000kg - £7.600

    I have been advised that in the exams they are more likely to us FIFO or AVCO

    Hope this helps and good luck for tomorrow as i am taking mine also
  • kazseera
    kazseera Registered Posts: 87 Regular contributor ⭐
    hey thanks for the helppp
    yayyy i got the right answer for ydya s exam:-D

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