FIFO……show your workings plz

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This topic contains 3 replies, has 4 voices, and was last updated by Avatar of Sangria9 Sangria9 1 year, 11 months ago. This post has been viewed 60 times

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    queeenshana
    Participant
    • Topics: 25
    • Replies: 20

    At the begin of Period 11 Zinc Ltd. had an opening stock of 40units of product X valuaed at $15.00 each. The following movements occur:

    Day 5 sold 35 items for $6.00 each
    Day 10 bought 9 items for $7.00 each
    Day 14 sold 13 items for $8.00

    Using FIFO metthod show the closing amount at the end of period 11?


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    kate2lyn
    Participant
    • Topics: 2
    • Replies: 2

    opening stock : 40units * $15
    day 10 : 9 * $7

    sales:
    day 5 : 35 * 6
    day 14: 13* * 8

    total sold = 48..

    so we take out first the 40 in opening stock, the remaining 8 we take out of the purchases on day 8..

    closing stock would be = ( 40 – 40 , 9-8) = 1 left.. worth $7.

    i think that’s the answer.. but i cannot be sure. wait for someone stronger than me to confirm or deny..


    Avatar of Najiya
    Najiya
    Participant
    • Topics: 1
    • Replies: 96

    yes…that s correct! :)


    Avatar of Sangria9
    Sangria9
    Moderator
    • Topics: 20
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    I also have answer $7.

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