FIFO Method Question

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FIFO Method Question

by Gagan
(Ghaziabad)

1/3/2009
1 Mar opening balance 880 @ $9
2 Mar purchase 300 @ $6
4 Mar sell 400
6 Mar sell 600
10 Mar purchase 400 @ $8
15 Mar purchase 500 @ $5
22 Mar sell 900
27 Mar purchase 200 @ $2
28 Mar sell 100
30 Mar purchase 900 @ $3
31 Mar sell 700

What is the closing balance if this business uses the FIFO method?

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FIFO Method Question

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Different Answer
by: Anonymous

Correct Answer after completing all entries.

31 March 480 * $3 = $1440

Answer
by: Qasim

Closing Balance is 1080 units having total value of 6780.

Details;

180 units @ $ 6 having value 1080
400 units @ $ 8 having value 3200
500 units @ $ 5 having value 2500

total

1080 units @ $ (N/A) having value 6780

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