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September 16, 2020 at 5:25 pm
Sir when using the LIFO I though I should be valued by the olderst available inventory. please explain sir
John Moffat says
September 17, 2020 at 10:58 am
If you are referring to question 4, then it does not ask you to value the inventory.
May 11, 2020 at 11:46 am
Sir i have a doubt. One of the questions read:
Which two of the following would be received from a supplier?
I understand that goods delivery note and purchase invoice would be sent by the supplier.
But i was just thinking why not goods despatched note also? That is also sent by the supplier.Isn’t it?
May 11, 2020 at 2:30 pm
No. The supplied would keep the goods despatch note. it is prepared by the department that despatched the goods. One copy will be kept in that department and another copy will be sent to the accounts department so that they can then prepare the invoice.
May 12, 2020 at 1:53 am
Got it. Many thanks sir!
May 12, 2020 at 6:14 am
You are welcome 🙂
March 18, 2020 at 10:19 am
hi , on question 4 the solution you gave does not include the issue on 13 August so I think the answer should be $385 which is 10*$6+50*$5.50+10*$5
March 19, 2020 at 5:17 am
The solution is correct. The question does not ask you to calculate the inventory, it asks for the value of the issue on 29. August.
August 14, 2020 at 8:38 am
mr John Moffat have yet understood how you got the value of the issue on 29. August. Please help show a more clear working. Thank you
August 14, 2020 at 9:38 am
The workings appear on the screen after you have submitted your answers and then click ‘review quiz’.
March 2, 2020 at 12:04 pm
Thank you truly for all of the work that you do at open tuition
March 2, 2020 at 2:31 pm
Thank you for your comment 🙂
January 4, 2020 at 5:42 am
I can’t believe i am receiving this quality of lecture for free.Thank you very much open tuition for your generosity
January 4, 2020 at 8:25 am
November 12, 2019 at 5:37 pm
100% , feeling good. ?
November 13, 2019 at 9:04 am
May 6, 2019 at 5:00 pm
On the LIFO question isn’t the answer supposed to be $465?
The first issue would be deducted from the opening bal leaving 60 units
The second issue of 70 would be taken 50 units from 26th August and 20 units from 14 August
That leaves remaining inventory of (60 @ $5) + (30 @ $5.5) = $465
June 26, 2019 at 2:46 pm
yes even Im having the same problem how is it not $465 (question 4)
June 26, 2019 at 3:06 pm
The question is not asking you to value the closing inventory (in which case what hansiezefy has written would be correct).
The question is asking for the value of the issue on 29 August, and the pop-up answer is correct.
August 9, 2019 at 1:25 pm
The answer is rather $410, LIFO >>> (50@6=$300), (email@example.com=@110)>>> $300+$110=$410
August 9, 2019 at 4:26 pm
Which is what the pop-up answer has written 🙂
October 6, 2019 at 9:50 am
You are asked to find value of the issue on 29 August (it is 70 units). As LIFO is last in first out, you need to identify the cost of this remaining inventory by the cost of last receipts. For example, the cost of last receipt on 26 August is $6 per unit, but it is not enough for 70 units because there only 50. That’s why, from 50 receipts on 14 August which is $5.50 per unit cost, we take the cost of 20 units in order to find the value of 70 remaining inventory. Finally, (50*$6.00)+(20*$5.50)=$410
October 6, 2019 at 1:46 pm
Yes, that is the correct answer (as the answer to the test says) 🙂
March 2, 2019 at 5:37 pm
hi john can you please explain me LIFO/WEIGHT AVERAGE MESSAGE AGAIN..I DIDNT UNDERSTAND WELL .PLEASE HELP US THE EASY WAY
February 10, 2019 at 7:28 pm
The LIFO question is confusing me. I’m not sure from the answers whether you worked out using FIFO rather than LIFO. Also, I got a closing inventory of ’90’ (100-40+50+50-70) rather than the ’70’ on the answers. Unless I am misunderstood?
February 11, 2019 at 5:59 am
The answer has been worked out using LIFO.
Also, the question does not ask for the value of the closing inventory. It asks for the value of the issue on 29 August, and the issue was of 70 units. 50 of them were from the most recent purchase and the other 20 were from the one before.
November 17, 2018 at 11:40 pm
to find out CWAC I can’t understand why we get 875 but not 775 because 40*5=200
why 160 units but not 140
November 18, 2018 at 9:54 am
Which question are you asking about?
February 21, 2019 at 1:45 am
question 4 i guess
November 3, 2018 at 11:00 am
I think the LIFO question should actually be asking for FIFO based on the answers?
November 3, 2018 at 6:52 pm
It is a typing mistake – thank you for letting me know. I will have it corrected 🙂
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