# FIFO Method Question

by Ritu Mehan
(Ludhiana, Punjab, India)

Date Particulars Units Rate

01.03.09 opening stock 100 \$1.75
05.03.09 purchased 150 \$1.50
12.03.09 purchased 300 \$1.60
08.03.09 issued 200 \$ -
18.03.09 issued 250 \$ -

Assuming this business used the FIFO method, what would the rates be for the above issues of inventory?

### Comments for FIFO Method Question

 FIFO by: Anonymous Add more questions for FIFO method.

 Question Re: Closing Inventory by: Alex Can anyone please help me with this one?!V Ltd's records at year end showed that there were 60 units on hand at cost of \$50 each. A stock count at year end found there were only 52 units of inventory on hand. V Ltd had sold 100 units of inventory in the last month of the year realising a net price of \$45 after selling costs. Which of the following statements is true?Select one:a. Sales in the last month of the year \$4 500b. Loss of inventory \$660c. Inventory on hand at year end \$2 600d. Inventory on hand at year end \$2 340 Hi Alex, the answer is c. \$2,600. This is calculated as 52 units x \$50 cost = \$2,600. The actual inventory on hand is 52 units so this is the figure we use.Btw the sales is not \$4,500 - "sales" is a gross figure without any selling costs but what they give us - the net price of \$45 - is after selling costs have been deducted.Best,Michael Celender

 not clear by: Anonymous why was 200 used and not 250?

 answer by: Anonymous stock ledger 1.03.09 [100 1.75 175]5.03.09 150 1.5 225 [100 1.75 175 150 1.5 225]8.03.09 100 1.75 175 [--- 50 1.5 75] 100 1.5 150 12.3.09 300 1.6 480 --- [ 50 1.5 75 300 1.6 480]18.03.09 50 1.5 75 200 1.6 320 [100 1.6 160]thus ans. is on 8th \$325 and on 18th is \$395. that should simplify your matters.

 ans by: Anonymous i) for 200 issued, price is \$325ii) for 250 issued, price is \$395