Just a quick question regarding FIFO as I do not undarstand why units bought on the 25th & 20th November have been used rather than the ones bought first i.e on the 10th & 20th of November.
Since the assumption is that those purchased first are also sold first, the remaining units in inventory will always be the most recently purchased, i.e. units will be valued at the cost of the latest purchase/s since these will be the unsold units.
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Hi John,
Just a quick question regarding FIFO as I do not undarstand why units bought on the 25th & 20th November have been used rather than the ones bought first i.e on the 10th & 20th of November.
Can you please advise?
Many thanks
Hi Anya,
Since the assumption is that those purchased first are also sold first, the remaining units in inventory will always be the most recently purchased, i.e. units will be valued at the cost of the latest purchase/s since these will be the unsold units.
Hi sir,
There is an error at the end of the calculation. 600 – 100 is 500 and the $8,686 is divided by the 500.