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?

Comments for FIFO Method Question

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fifo
by: makwaza

closing 480 *$3=1440

FIFO Method Question
by: Patrick

Closing Balance:

400 units worth $1,200

Working is as follows;

Receipts Issues Balance
units $ total units $ total units $ total
800 9 7,200

300 6 1,800 1,100 9,000

400 9 3,600 700 5,400

600
400 9 3,600
200 6 1,200
600 4,800 100 600

400 8 3,200 500 3,800

500 5 2,500 1,000 6,300

900
100 6 600
400 8 3,200
400 5 2,000
900 5 2,000 100 500

200 2 400 300 900

100 5 500 200 400

900 3 2,700 1,100 3,100

700
200 2 400
500 3 1,500
700 1,900 400 1,200

The last figures under Balance is the closing stock(inventory) for the end of the month i.e.
400 units $1,200.
On my answer, i excluded the date column, the spaces in between the figures on the top and those below represent another date.

If you have any question on this, please ask.

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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