Eagle/Osborne Chapter 8

Clarekaye

I am studying with Eagle and they use Osborne books,

In chapter 8, page 38, 8.4 B

Is the answer correct?

Why are they not using the unit bought in Jan when working out the FIFO??

coojee

Clarekaye wrote: »

I am studying with Eagle and they use Osborne books,

In chapter 8, page 38, 8.4 B

Is the answer correct?

Why are they not using the unit bought in Jan when working out the FIFO??

Because under FIFO all those goods were issue out in March. The March issue was 240 units, 200 from Jan and 40 from Feb. Then in June the remaining 60 from Feb were issued and 40 from April. That leaves 60 from April at £10.50 and 140 from May ay £10 giving a valuation of £2030.