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Hi Mr John , Is LIFO asked in exam of F2 ? I’ve tried to look for questions about LIFO in practice book from BPP . But I can’t find any … Thanks
Example 3 ( chapter 5 ) :
can I still solve it like in F3 ?
Total cost /( opening inventory+ total unit of purchase )= (20 x4 ) + ( 140 x 4.40 ) + ( 100 x4.60) / 260 = 4.44 ?
but when I solve like this , the answer is only 178$ ( 4.44 x 40 ) , not 180$ ( 40 x 4.49) like your lecture
It is not called Paper F2 any more – it is Paper MA.
But yes – if you look at the syllabus on the ACCA website you will see that LIFO is specifically mentioned as being examinable. That is why I work through an example on LIFO in my free Paper MA lectures.
(I don’t know why you mention Paper FA (it is no longer called F3), because LIFO is not allowed for financial accounts).
I hope that you are using a current edition of the BPP Revision Kit, because of the change in the syllabus – the addition of some statistics.
Thanks for replying .
But I’m wondering if I can use the same method/way from paper FA for solving AVCO , FIFO in paper MA ?As with example 3 / chapter 5 in opentuition lecture , it gave me a different answer ( my working is above ) . Thanks Mr John
I still do not understand you, because AVCO, FIFO and LIFO are all different ways of calculating and you do it whichever way the question requires.
In Paper FA you can only be asked for either AVCO or FIFO. In Paper MA you can be asked for any of the three methods.Example 3 asks you to use the cumulative weighted average cost, and your workings are not the way that I show it in the Paper FA lectures. My MA lectures do it the same way as do my FA lectures.
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