FIFO METHOD Formula

WHAT IS A COMPUTERISED FORMULAE FOR FIFO METHOD WHEN CALCULATING THE VALUE OF THE CLOSING INVENTORY?

Comments for FIFO METHOD Formula

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Inventory Valuation
by: Anonymous

I am grateful for this kind of opportunity. I thank you for a good job, well done.

Pls I still find it difficult to understand the way the methods are used, especially in forming the table. I want to ask if there is a way to make it simpler using the FIFO, LIFO and average methods. Kindly do it please to help me understand, thank you.

Hi there, the best thing is to check out my full tutorial on Inventory Accounting Methods: FIFO and LIFO Accounting, Weighted Average Method. The tutorial includes a full example for each of the inventory methods.

Good luck!

Best,
Michael
Founder of Accounting Basics for Students

layout format
by: Anonymous

i am very much worried about the layout formats of these stock valuation methods because what i just saw is that they look almost the same, so if you can further distinguish format for the three please

FIFO method
by: Shivam Shrivastava

It is very simple....
calculate total [(purchases+opening stock in quantity) - total issue in quantity]* Rate of last purchases.

Example:-
01-01-2014 OPENING STOCK 250 UNITS @20 each.
05-01-2014 Purchase--500 units @25 each.
07-01-2014 Issued 300 units
10-01-2014 Purchase 600 units @18 each
15-01-2014 Issued 1000 units.

VALUE OF CLOSING STOCK--:
Total purchase + opening stock = 1350 Units
Total Issued = 1300 Units

So, REMAINING UNITS= 50 Units

value of remaining units
50 * Rate of last purchase
= 50 * 18
= 900

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