AAT ADSY Advance Synoptic, practice assessment question 3

Hi Annaoj

We know that the system is FIFO and that 3,600kg remain so we can work from most recent purchase backwards.

11/1 All 3,200kg is in there for £7,360

6/1 Only want 400kg which is a quarter of purchased. £3440/4 = 860

Total value = 7360 + 860 = £8,220

To do it properly would take more time but can be used on more complex calculations easier.
Date ----Amount - Value --- Total held --- Total Value
1/1/X8 - 8000kg - £18,000 -- 8,000 ----- 18,000
6/1/X8 - 1,600kg - £3,440 -- 9,600 ------ 21,440
11/1/X8 - 3,200kg - £7,360 - 12,800 ----- 28,800

13/1/X8 - (9,200kg)- (£20,580)- 3,600 ---- 8,220

Sorry about all the '-' just wanted to try and line it up. By laying it out more you can easily apply the AVCO method should you be required to.