A few days ago
Anyone Understand the FIFO method of Accounting?
Ok so I am in my first year of accounting and I have a question…we are doing a FIFO, LIFO, and a Weighted Average sample problem and I have the formula but on the FIFO inventory sheet can there be a negative inventory? I put in the beginning inventory….here it is…maybe someone could help me with what I am doing wrong…
Jan. 1 Beg. Inventory 120 units @ $6.00 = $720
Jan. 10 Sales 70 units @ $15
Mar. 7 Purchase 200 units @ $5.50 = $1,100
Mar. 15 Sales 125 units @ $15
July 28 Purchase 500 units @ $5.00 = $2,500
Oct. 3 Purchase 375 units @ $4.40 = $1,650
Oct. 5 Sales 600 units @ $15
Dec. 19 Purchase 100 units @ $4.10 = $410
Totals: 1,295 units Acquired at Cost
$6,380 under units Acquired at Cost
795 Units Sold at Retail….
I have started this and have it mostly filled out….I can email if you want…
Top 3 Answers
A few days ago
Favorite Answer
I think i have answered the same question of yours elsewhere.. 🙂
1
5 years ago
I have idea about FIFO methods of Computer Science. It means First In First Out. Example Queue of the passengers in a bus stop.
0
A few days ago
For starters, FIFO simply means first in first out. That means that when calculating cost of goods sold, you use the cost of acquisition of the oldest inventory before you start selling the newer inventory.
1
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