LIFO/FIFO and average cost

Jordans n Timbs

Hi, I was praying for some assistance in calculating the FIFO/LIFO and average cost on this problem for my 2nd year accounting course as I'm attempting it here with varying degrees of success.


This is the information I was given. I was also told there was no opening stock, and to calculate closing inventory for the following:





1 august received 2000 @ $10
5 august received 620 @ 10.80
7 august issued 1350
11 august received 600 @ $11.50
13 august received 400 @ $12.50
17 august issued 1250
19 august received 1050 @ $11
22 august received 640 @ $10.50
28 august issued 250



Any help or guidance afforded to me in this question would be greatly appreciated. Thanks for your time.

Shaque attack

Hi Jordan,

What part of the question are you struggling with? Is it getting the closing stock using FIFO/LIFO or doing the weighted average cost?

Jordans n Timbs

Shaque attack wrote: »

Hi Jordan,

What part of the question are you struggling with? Is it getting the closing stock using FIFO/LIFO or doing the weighted average cost?

Thanks for the response, yes both unfortunately, I can send you a picture of where I am in it if needed.

I'd really like to see the workings, after that I could compare and contrast and take it from there, I'm convinced I'm 75% there, but there's clearly something gone awry in the workings.

Shaque attack

Do you know the answer you're supposed to get or what makes you think you've got it wrong?


For the FIFO/LIFO part seperate the received and issued into columns and keep them in order of date. Then it's just a case of matching them off one by one until you're left with your closing stock.

Then it's just a case of weighting them. I'm sure the textbook you're working from will show you an example of how its done.

Jordans n Timbs

Shaque attack wrote: »

Do you know the answer you're supposed to get or what makes you think you've got it wrong?


For the FIFO/LIFO part seperate the received and issued into columns and keep them in order of date. Then it's just a case of matching them off one by one until you're left with your closing stock.

Then it's just a case of weighting them. I'm sure the textbook you're working from will show you an example of how its done.

That's the part I'm having trouble with, matching them off one by one. The textbook isn't the best as it only shows me a simpler version of the question, and it's sample answer.


This question is a bit more technical but cone hell or high water I'm going to try and knock it out tonight .

masoodsarwar

Jordans n Timbs wrote: »

Hi, I was praying for some assistance in calculating the FIFO/LIFO and average cost on this problem for my 2nd year accounting course as I'm attempting it here with varying degrees of success.


This is the information I was given. I was also told there was no opening stock, and to calculate closing inventory for the following:





1 august received 2000 @ $10
5 august received 620 @ 10.80
7 august issued 1350
11 august received 600 @ $11.50
13 august received 400 @ $12.50
17 august issued 1250
19 august received 1050 @ $11
22 august received 640 @ $10.50
28 august issued 250



Any help or guidance afforded to me in this question would be greatly appreciated. Thanks for your time.

FIFO

masoodsarwar

you can do Lifo and Weighted average in the same way.
Excel is pretty handy for this stuff if u have some idea how to use it