FAfifo urgent

hey shujaattt,

Well, that is FIFO - First in First out ,
so keep in mind that those goods that were in stock / purchased first, go out first when sold.

Solution will be the following

Inventory balance b/f : 50 units @ $40 = $2,000
Purchased 100 units @ $45 = $4,500
(u firstly sell those 50 that were in stock as they have different price from units that were purchased later)
Sold 50 units @ $ 40 = (2,000)
Sold 30 units @ $45 = (1,350)
(80 - 50 = 30 , you sell them out of 100 purchased)
Purchased 50 units @ $50 = 2,500
Sold 60 units @ $45 = (2,700)
(After you sold 30 out of 100, you were left with 70 of those, so now u sell 60 out of those)

Balance c/f
10 units @ $45 = $450
50 units @ $50 = $2,500
__________________
60 units with NBV of $2,950

Well u can simply add and deduct those above to find the answer quickly:
2,000 + 4,500 - 2,000 - 1,350 + 2,500 - 2,700 = 2,950

very best of luck with your CBE!
don't forget to try CBE demo available at ACCA global and check examiner's reports with solutions to some tricky past exam questions.

Initial stock = 50 *40
Purchase = 100*45
Sold = 80 that means 50 from the initial stock and 30 from the purchase . This means closing inventory so far (100-30)*45 - 70*45
Purchase = 50*50
Sold = 60 that means 60 units from the previous closing inventory of 70*45. This leaves you with closing final inventory of :
(70-60)*45 = 10*45 = 450
last purchase 50*50 = 2500
Closing inventory 2950

thank you so much guys ...I can not even imagine how come you guys could be so much talented. my hat is down for you guys.