# Cost and revenues practice assessment 1 - question 1 on the AAT website

Options
Registered Posts: 75
Hello everyone,

This is probably going to sound like a silly question but I am having one of those pre-exam moments where I seem to forget all of the simple things!

Question 1asks for the inventory record to be worked out using the FIFO method. Link below

For the issue on the 27th December, how is the cost of 2.167 per unit worked out?

Also, in part B of the question, how do you arrive at a figure of 15720 when working out the total issue of 7200kg on the 13th December using the FIFO method?

• Registered Posts: 320
Options
I haven't done this one yet, hoping to go through at work tomorrow... but on the first part, the issue on 27th Dec is from the remaining 800 units at 2.250 = £1800 + 4000 units at 2.150 = £8600. Together these total £10400, and dividing by 4800 units is 2.167 to 3dp. I've only ever filled in tables like this for AVCO as otherwise the unit costs are just confusing. I'm also doing this exam tomorrow so better get back to it
• Registered Posts: 320
Options
The second bit I found a lot more difficult but probably worth working through it because if this comes up again later I have more chance of remembering this.

Starting with 8000 units balance at 2.25. First receipt is additional 4800 units at 2.15.
Then the LIFO issue 7200 units: 4800 units (as last-in) at 2.15 = £10320 + 2400 units from the opening balance at 2.25 = £5400. Combined these total £15720.
• Registered Posts: 75
Options