# Inventory and IAS 16 Valuation of Inventory – Example 5

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1. awain says:

Thanks Opentuition, Am very, very grateful, you have helped me a great deal

2. npaddy says:

hullos, cant connect… always getting this nagging message: server not found!!!!

• admin says:

Your PC/internet is behind a firewall. contact your internet provider to help you out

3. coolgirl1984 says:

5 Dollars for a pen? You need to change a supplier man…

• johnmoffat says:

@coolgirl1984, But you don’t know what a wonderful pen it is

• coolgirl1984 says:

@johnmoffat, That would only the salesperson say!

4. kamibangash says:

wow amazing and interesting lecture…… everything has explained very keen and clearly….thnxxxxxx

5. ymusmani says:

HI! I have an exam tomorow so pleasee help me quick!
Test Q2: why does the answer include administrative overheads??
Shouldn’t only production costs be included? and here there is only carriage inwards and no other….though I am confused about whether we could include factory plant depreciation…
what is meant by general administrative overheads?
Please Help!

6. Amazing…. very usefull

7. rahabmwangi says:

a very gud lecture keep up the good work

8. sylwiin says:

Hello, I have a similar exercise in Kaplan Exam Kit(exercise 26/page 8):
A. buys and sells inventory during the month of August as follow:
Opening inventory-100 units 2.52/unit
4 August -sales 20 units
8 August-purchases 140 units 2.56/unit
10 August-sales 90 units
18 august Purchases 200 units 2.78/unit
20 August Sales 180 units
The AVCO is calculatedas follows:
100 units*2.52=252
140units*2.56=358
200 units*2.78=556
average cost per unit(252+358+556)/440=2.65
Closing inventory 150*2.65=397.5
The question is if I follow the Kaplan’s way and do the exercise which we have in a lecture the result is completly different.I’m confused and do not know what is correct

9. mariazhadan says:

Good evening! Could you explain me one thing? I’m confused very much!
Why in FIFO approach do we take not oldest units (300* 12 and 200*12,50), but latest (400*15 and 100*14)?
It’s not the “first-in” units, but last!

I’m waiting for your reply!

• johnmoffat says:

@mariazhadan, with FIFO, it is the oldest units that are sold first. This means that the units left are always the newest.

10. onican says:

Thank you much……

11. monik says:

exellent…lot better explained then in the class

12. zakir117 says:

too good

13. DA CEILSO says:

hi this is wonderful the lecture is perfect please keep it up open tuition job well done

14. estar says:

tanks sooooo much

15. imogomotsi says:

THANK U FOR THAT

16. denzyboo says:

GREAT

17. mursaleen says:

nyc……………well explained

18. s777 says:

thanks and good explaination . keep it up opentuition people.