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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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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