FRA stock valuation
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emma123
Registered Posts: 108 Dedicated contributor 🦉
My head is fried with stock valuation! Is anyone else finding this topic hard? I thought I understood what FIFO, LIFO and AVCO meant but when I do a few questions I end up getting them wrong so any help for this question below would be greatly appreciated 
This question is from Osborne workbook Chapter 9 Q. 9.4
Wyvern Office Supplies sells a range of pens paper etc. One of its lines is photocopying paper for which the stock movements in Jan 2004 were :
1 JAN Stock of 800 reams (a ream is 500 sheets) of paper brought forward at a cost of £2.00 per ream
5 JAN Sold 700 reams
11 JAN Bought 1,200 reams at £2.20 per ream
15 JAN Sold 600 reams
19 JAN Bought 1,000 reams at £2.10 per ream
21 JAN Sold 400 reams
26 JAN Bought 700 reams at £2.25 per ream
Selling price of each ream is £3.25
Question asks to calculate :
Sales for Jan - I answered this correctly
Closing stock for 31 Jan using FIFO and LIFO - this is the part I really need help with! It's probably straightforward though and I'll feel stupid afterwards for asking!
Cheers
Emma
This question is from Osborne workbook Chapter 9 Q. 9.4
Wyvern Office Supplies sells a range of pens paper etc. One of its lines is photocopying paper for which the stock movements in Jan 2004 were :
1 JAN Stock of 800 reams (a ream is 500 sheets) of paper brought forward at a cost of £2.00 per ream
5 JAN Sold 700 reams
11 JAN Bought 1,200 reams at £2.20 per ream
15 JAN Sold 600 reams
19 JAN Bought 1,000 reams at £2.10 per ream
21 JAN Sold 400 reams
26 JAN Bought 700 reams at £2.25 per ream
Selling price of each ream is £3.25
Question asks to calculate :
Sales for Jan - I answered this correctly
Closing stock for 31 Jan using FIFO and LIFO - this is the part I really need help with! It's probably straightforward though and I'll feel stupid afterwards for asking!
Cheers
Emma
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Closing stock for 31 Jan using FIFO and LIFO - this is the part I really need help with! It's probably straightforward though and I'll feel stupid afterwards for asking!
Cheers
Emma
We all got those moments! If confused try writing it out for a bit, just step by step on some scrap paper.
FIFO (first in first out):
1 Jan in stock 800 x £2.
5 Jan sold 700 x £2.
In stock left: 100 x £2.
11 Jan 1200 x £2.20
In stock:
100 x £2
1200 x £2.20
15 Jan 500 sold:
100 x £2 & 400 x £2.20
In stock left:
800 x £2.20
19 Jan + 1,000 x £2.10
In stock:
800 x £2.20
1000 x £2.10
21 Jan 400 sold x £ 2.20
In stock:
400 x £2.20
1000 x £2.10
26 Jan 700 x £2.25 bought.
In stock:
400 x £2.20
1,000 x £2.10
700 x £2.25
Closing stock is the stock listed on the 26th of Jan.
LIFO (last in first out):
1 Jan in stock 800 x £2.
5 Jan sold 700 x £2.
In stock left: 100 x £2.
11 Jan 1200 x £2.20
In stock:
100 x £2
1200 x £2.20
15 Jan 500 sold:
500 x £2.20
In stock left:
100 x £2
700 x £2.20
19 Jan + 1,000 x £2.10
In stock:
100 x £2
700 x £2.20
1000 x £2.10
21 Jan 400 sold x £2.10
In stock:
100 x £2
700 x £2.20
600 x £2.10
26 Jan 700 x £2.25 bought.
In stock:
100 x £2
700 x £2.20
600 x £2.10
700 x £2.25
Closing stock is the stock listed on the 26th of Jan.0 -
ur a star Rinske!
Thank u for helpin me out 0
