Home Forums ACCA Forum ACCA F3 – FIA FFA Financial Accounting Forums FIFO……show your workings plz

This topic contains 3 replies, has 4 voices, and was last updated by  Sangria9 1 year, 7 months ago. This post has been viewed 21 times

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• #52354

queeenshana
Participant

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?

#96767

kate2lyn
Participant

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- = 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..

#96768

Najiya
Participant

yes…that s correct!

#96769

Sangria9
Moderator