Lifo

HI all,

Has anyone attempted task 2.5 in the tutorial questions section of the unit 6 osborne book. I have to prepare a ledger record for product x using FIFO but am finding it a bit confusing. The info is as follows:

JAN RECEIVED 100 UNITS @ 4.00
FEB ISSUED 80 UNTIS
MAR RECEIVED 140 UNITS @ 4.20
APR RECEIVED 100 UNITS @ 3.80
MAY ISSUED 140 UNITS
JUN RECEIVED 80 UNITS @ 4.50

as it is fifo do i have to use the remaining 20 units at 4.00 after the issue of the first 80 units as the answer in the ack of the book hasnt used these up. Hope someone can help as little confused here!!


cheers

rob

Comments

  • valentino46
    valentino46 Registered Posts: 124 ? ? ?
    Lifo

    Help if i was using the right calc method!!
  • SandyHood
    SandyHood Registered, Moderator Posts: 2,034
    Fifo

    JAN RECEIVED 100 UNITS @ 4.00 so balance 100 @ £4 = £400
    FEB ISSUED 80 UNTIS all at £4 = £320 leaving balance of 20 @£4 = £80

    MAR RECEIVED 140 UNITS @ 4.20 leaving a balance of 20 @ £4 = £80
    mmmmmmmmmmmimmmmmmmmmmmmmvalueplus 140 @ £4.20 = £588
    mmmmmmmmmmmmmmmmmmmmmmmmvaluea total of 160 worth £668

    APR RECEIVED 100 UNITS @ 3.80 leaving a balance of 20 @ £4 = £80
    mmmmmmmmmmmimmmmmmmmmmmmmvalueplus140 @ £4.20 = £588
    mmmmmmmmmmmimmmmmmmmmmmmmvalueplus 100 @ £3.80 = £380
    mmmmmmmmmmmmmmmmmmmmmmmmvaluea total of 260 worth £1,048

    MAY ISSUED 140 UNITS So 20 @ £4 = £80
    mmmmmmmmmmvalue120 @ £4.20 = £504
    mmmmmmvaluetotal 140 worth £584
    Leaving a stock balance of mmmmmmmmmmmimmmmmmmmmmmmmvalue20 @ £4.20 = £84
    mmmmmmmmmmmimmmmmmmmmmmmmmmmmmmmmmmmmmvalueplus 100 @ £3.80 = £380
    mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmvaluea total of 120 worth £464


    Hopefully that makes sufficient sense for you to add JUN RECEIVED 80 UNITS @ 4.50 and complete it

    For a better layout look at
    Stock Blog One on FIFO
    Stock Blog Two on LIFO and AVCO
    Stock Blog Three with practice question
    Sandy
    [email protected]
    www.sandyhood.com
  • valentino46
    valentino46 Registered Posts: 124 ? ? ?
    Lifo/fifo/avco

    thats fantastic, always seems to fall into place when i see someone else working it out!!!

    blogs are excellent also sandy, theyve been a good help already to me.

    keep up the great blogging

    rob
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