Virtual University of Pakistan Study forum !
Hope Following Steps might help you in making Assignments.Also share if you have more information .
The first in, first out (FIFO) method of inventory valuation is a cost flow assumption that the first goods purchased are also the first goods sold.
Dear Students Add your gallon and rs values in it:
1. earliest goods purchased are the first ones removed from the inventory account. This results in the remaining items in inventory being accounted for at the most recently incurred costs, so that the inventory asset recorded on the balance sheet contains costs quite close to the most recent costs that could be obtained in the marketplac
example of the First-in, First-out Method
ABC Corporation decides to use the FIFO method for the month of January. During that month, it records the following transactions:
|Purchase (layer 2)||+150||280||42,000|
|Purchase (layer 3)||+50||300||15,000|
|Ending inventory||= 125|
MGT402 Assignment # 1