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FIFO method of pricing

hi guys! I'm having a problem with this question which is in attachment :confused:

hi guys! I'm having a problem with this question :confused:

The following information relates to the receipts and issue of material X into stock during January 19X1.

Date---------- Receipts into stores----------------------------- ------------ Issue to production

1.1.x1 Quantity Units 100 of Price $10 Value $ 1000 Quantity Units ?
10.1.x1 Quantity Units 150 of Price $11 Value $ 1650 Quantity Units ?
15.1.x1 Quantity Units ? Of Price ? Value $ ? Quantity Units 125
20.1.x1 Quantity Units 50 of Price $12 Value $ 600 Quantity Units
31.1.x1 Quantity Units ? Of Price ? Value $ ? Quantity Units 150

Required: Using FIFO method of pricing the issue of goods to production , calculate :
a) The issue prices at which goods will be changed to production ?
b) The closing stock value at 31 Jan?

Thank you! :p

Quote:

Originally Posted by malami

1.1.x1 Quantity Units 100 of Price $10 Value $ 1000 Quantity Units ?
10.1.x1 Quantity Units 150 of Price $11 Value $ 1650 Quantity Units ?
15.1.x1 Quantity Units ? of Price ? Value $ ? Quantity Units 125
20.1.x1 Quantity Units 50 of Price $12 Value $ 600 Quantity Units
31.1.x1 Quantity Units ? of Price ? Value $ ? Quantity Units 150

I really don't understand any of this information. First, what's all the 1.1x1 stuff? And there isn't any information to tell you how many went into production and how many didn't. The whole point of FIFO and LIFO is to decide which costs to use for the ones that went into production. But there is nothing here saying how many went into production. You have units written in two places. Like the first line -- 100 units at $10 = $1000. And then you've got units again with a? I don't even know what that second unit thing is supposed to be for.

FIFO means the first ones purchased are the first ones to go. But there's nowhere it says how many went into production. And too many ? Marks all over the place, and no information that would tell you how to fill those in.

I am highly suspecting that you are leaving out some very important information.

Quote:

Originally Posted by morgaine300

I really don't understand any of this information. First, what's all the 1.1x1 stuff? And there isn't any information to tell you how many went into production and how many didn't. The whole point of FIFO and LIFO is to decide which costs to use for the ones that went into production. But there is nothing here saying how many went into production. You have units written in two places. Like the first line -- 100 units at $10 = $1000. And then you've got units again with a ?. I don't even know what that second unit thing is supposed to be for.

FIFO means the first ones purchased are the first ones to go. But there's nowhere it says how many went into production. And too many ? marks all over the place, and no information that would tell you how to fill those in.

I am highly suspecting that you are leaving out some very important information.

hi morgaine300, thanks for trying to help me...

1.1.X1 is the date as 1. January 1991, and all other are different dates till the end of the month. All this QUESTION MARKS are gaps which I have to guess and make an whole. That’s the problem of this example.

So far I got the point of Fifo and Lifo, but I don't get this exmple. :((((

Quote:

Originally Posted by malami

hi morgaine300, thanx for trying to halp me...

1.1.X1 is the date as 1. January 1991, and all other are different dates till the end of the month. All this QUESTION MARKS are gaps which I have to guess and make an whole. That’s the problem of this example.

So far I got the point of Fifo and Lifo, but i dont get this exmple. :((((

Date------ Receipts into stores-------------------------- Issue to production

1.1.x1 ------Quantity Units 100 x $10 Value $ 1000------------- ------------Quantity Units ?
10.1.x1 -----Quantity Units 150 x$11 Value $ 1650------------- ------------Quantity Units ?
15.1.x1-----Quantity Units ? Of Price ? Value $ ?---------------------------- Quantity Units 125
20.1.x1------Quantity Units 50 x $12 Value $ 600 ---------------------------Quantity Units?
31.1.x1 ----Quantity Units ? Of Price ? Value $ ? ----------------------------Quantity Units 150

Required: Using FIFO method of pricing the issue of goods to production , calculate :
a) The issue prices at which goods will be changed to production ?
b) The closing stock value at 31 Jan?

Thank you!

OK, I get the date now. That just looks like a multiplication and I couldn't figure it out. :-) I've never seen it written with decimals, and I have seen stuff like 20x1, which I've always found to be really odd.

But I still don't get how you're supposed to figure any of this out. Like just looking at the very first one, there isn't anything anywhere that would tell you how many units went into production. You can't cost them if you don't know how many there are. Part of costing is deciding which ones to pull out of which price categories, but they still have to tell you how many went into production and/or how many are left.

All I can see is that there's 300 total listed under receipts and two missing ones. And there's 275 that went into production from two dates, but the rest are missing. And no totals. No anything.

You're confused because the info simply isn't here to figure it out. It's like trying to solve an algebra problem with six variables in it.