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    Kyla Stjohn's Avatar
    Kyla Stjohn Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Mar 14, 2008, 08:59 AM
    Lifo, fifo, and avco
    I need to understand how to do the above valuation accounting it is very confusing to me could you create some steps so that I can follow or a simpler way to understand it. Thank you.

    :confused:
    ms180sx's Avatar
    ms180sx Posts: 64, Reputation: 6
    Junior Member
    		  
    #2

    Mar 14, 2008, 11:02 AM
    lifo is last in first out. Fifo is first in first out.
    They're a way of calcultating costs.
    Say u buy 5 widgets at 5 dolalrs in month 1, don't sell any
    then u buy 10 widgets at 10 dollars in month 2
    then you sell 12 widgets. How much was the cogs?
    using last in first out, the 10 went first, so $100, then 2 more at 5$, so a total of $110.00
    using the first in first out, you sold all 5@ $5.00, or 25, then 7 @ 10, or 70 = total of $95.oo

    I'm not to sure what avco is about, still in my second accounting class.
    maqsood's Avatar
    maqsood Posts: 2, Reputation: 1
    New Member
    		  
    #3

    Nov 4, 2009, 09:23 PM
    Avco is average cost of goods sold
    Total purchases divided by its units
    farahsyeda's Avatar
    farahsyeda Posts: 2, Reputation: 1
    New Member
    		  
    #4

    Oct 19, 2012, 09:24 AM
    I have this question on fifo and avco please anyone can help.
    On 1st dec abc company held 300 units goods of 5$
    Goods purchased:
    11th December 500 units at 11$
    19th dec 500 units for 12$
    26th December 500 units for 14$

    Goods sold:
    13th dec 600 units for 18$
    21th dec 400 units for 18$
    26th dec 200 units for 18$
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