Thank you Mr Moffat. You’re literally the only person I have come across who has helped me FINALLY understand this and I’ve gone through multiple sources looking for help. Great at explaining and made it extremely easy to comprehend. Thank you so much!
Sir for LIFO, since they are accounted on the year end, and not perpetually like Avg, can we not just do: 20 + 140 + 100 – 80 – 140 = 40 (20 x 4) + (20 x 4.4) = 168.
Simple calculation of quantity like FIFO, then take cost from old stock instead of new stock for LIFO reasons.
ββββ
Sir for Avg cost, can we simply do: 20 + 140 + 100 – 80 – 140 = 40
(4 + 4.4 / 2) = 4.2 (4.2 + 4.6 / 2) = 4.4
40 x 4.4 = 176
Your answer was around 180.
Is this method good enough ? Is this small difference of value an issue ?
Well simplified lecture, sir ! And really a funny adorable comment for shopping in the Supermarket – LIFO style , made me laugh off loud.
Sir, if you may, shall you be covering about periodic weighted avg later on? I saw it briefly mentioned alongside Weighted Avg, in my Tuition Notes of the Institute I go to. Or it wonβt appear in the Exams and we donβt need to know.
sir, i don’t understand how we 40*4.49 instead of 140*4.49 in example 3 (Weighted average cost. The last issue). in the lecture it says its because we sold 100 units. so why didnt we apply that in the previous issue?
Parris28 says
Thank you Mr Moffat. You’re literally the only person I have come across who has helped me FINALLY understand this and I’ve gone through multiple sources looking for help. Great at explaining and made it extremely easy to comprehend. Thank you so much!
John Moffat says
Thank you for your comment π
optnuser says
Am I provided by calculator and paper-list for notes in cbe exam
L.Thenuka says
Dear John,
For LIFO, since they are accounted on the year end and not perpetually,
Is the below method; a valid approach of arriving at the answer?
Purchases & OP Inv:(20 + 140 +100) = 260
Sales: ( 80 + 140) = 220
Closing Inventory: 260 – 220 = 40
LIFO Valuation: (20 x $4.00) + (20 x $4.40) = $168.
Please Advice,
Thank You!
Salexy says
Very simple and understood. Thanks Mr. Moffat…Your lectures are quite easy.
joe123456 says
Woooooowwww I am at y third year University and had never understood these methods of stock valuation but today I have. Thanks to open tuition
John Moffat says
Great π π
jvowles says
Hi with the LIFO example, 12th Nov- ‘Sold 80 Units’ why is it that:
You’ve written down, sold 60*Β£4.40 + 20*Β£4.00.
The last most recent purchases was from the 140 units, so why is it not:
80*Β£4.40
jvowles says
Ignore me, I think its the way that you’ve done your calculations that’s confused me.
Many thanks
John Moffat says
OK π
sintayehubirkneh says
well Explained
Standelous says
Beautiful! Well simplified and understandable.
Thank you Sir
John Moffat says
Thank you for your comment π
AZowi says
Thank you so much Mr. Moffat the lecture was so beneficial.
John Moffat says
You are welcome π
Asif110 says
Sir for LIFO, since they are accounted on the year end, and not perpetually like Avg, can we not just do:
20 + 140 + 100 – 80 – 140 = 40
(20 x 4) + (20 x 4.4) = 168.
Simple calculation of quantity like FIFO, then take cost from old stock instead of new stock for LIFO reasons.
ββββ
Sir for Avg cost, can we simply do:
20 + 140 + 100 – 80 – 140 = 40
(4 + 4.4 / 2) = 4.2
(4.2 + 4.6 / 2) = 4.4
40 x 4.4 = 176
Your answer was around 180.
Is this method good enough ? Is this small difference of value an issue ?
SarahHaytasingh says
I want to know the same!! Iβm so confused
Asif110 says
Well simplified lecture, sir ! And really a funny adorable comment for shopping in the Supermarket – LIFO style , made me laugh off loud.
Sir, if you may, shall you be covering about periodic weighted avg later on? I saw it briefly mentioned alongside Weighted Avg, in my Tuition Notes of the Institute I go to. Or it wonβt appear in the Exams and we donβt need to know.
LaVendah says
Thank you very much for the class Sir. It was beautiful and understandable.
John Moffat says
Thank you for your comment π
DhirajACCA says
A thoroughly enjoyable lecture indeed ! Thank you so much Mr.Moffat.
John Moffat says
Thank you for your comment π
ha12 says
Is there not periodic weighted avg. method in f2?
safashaikh19 says
sir, i don’t understand how we 40*4.49 instead of 140*4.49 in example 3 (Weighted average cost. The last issue). in the lecture it says its because we sold 100 units. so why didnt we apply that in the previous issue?
safashaikh19 says
sorry i realised my mistake. i had forgotten the role of the units currently in store i.e 180!!Thanks anyways!
John Moffat says
You are welcome π