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    tammietoes's Avatar
    tammietoes Posts: 19, Reputation: 2
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    #1

    Nov 25, 2010, 06:30 AM
    Lifo, Fifo & Weighted Average - how would I calculate profit for first 6 months?
    I have a Q regarding Fifo, Lifo & the Weighted Average. Workings of the material costs attached.

    Purchases
    13 Jan 200 (7200 total cost)
    08 Feb 400 (15200 total cost)
    11 Mar 600 (2400 total cost)
    12 Apr 400 (14000 total cost)
    15 Jun 500 (14000 total cost)

    Sales
    10 Feb 500 (25000 total sale)
    20 Apr 600 (27000 total sale)
    25 Jun 400 (15200 total sale)
    tammietoes's Avatar
    tammietoes Posts: 19, Reputation: 2
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    #2

    Nov 25, 2010, 06:32 AM
    Prices per unit

    13-Jan-10 €7,200/200 €36.00 Sold 10 Feb - 200
    08-Feb-10 €15,200/400 €38.00 Sold 10 Feb - 300 /20 April - 100 = 400
    11-Mar-10 €24,000/600 €40.00 Sold 20 April - 500 / 25 June - 100 = 600
    12-Apr-10 €14,000/400 €35.00 25 June - 300 = 100 left
    15-Jun-10 €14,000/500 €28.00

    FIFO

    10-Feb-10 Sold 500 units
    200 x €36.00 €7,200
    300 x €38.00 €11,400
    €18,600 18,600

    20-Apr-10 Sold 600 units
    100 x €38.00 €3,800
    500 x €40.00 €20,000
    €23,800 23,800

    25-Jun-10 Sold 400 Units
    100 x €40.00 €4,000
    300 x €35.00 €10,500
    €14,500 14,500

    56,900 Value of Material used


    25 June 2010 Stock left
    100 x €35.00 €3,500
    500 x €28.00 €14,000 €17,500 value of closing stock

    The total price of units sold is €56,900
    The total cost price of all units purchased is €74,000
    The value of closing stock is €17,500


    Prices per unit

    13-Jan-10 €7,200/200 €36.00 10 Feb sold 100 - 100 left
    08-Feb-10 €15,200/400 €38.00 10 Feb sold 400
    11-Mar-10 €24,000/600 €40.00 20 April sold 200 - 400 left
    12-Apr-10 €14,000/400 €35.00 20 April sold 400
    15-Jun-10 €14,000/500 €28.00 15 June sold 400 - 100 left

    LIFO

    10-Feb-10 Sold 500 units
    400 x €38.00 €15,200
    100 x €36.00 €3,600
    €18,800

    20-Apr-10 400 x €35.00 €14,000
    200 x €40.00 €8,000
    €22,000

    25-Jun-10 400 x €28.00 €11,200
    €52,000 value of material


    25 June stock left
    100 x €36.00 €3,600
    400 x €40.00 €16,000
    100 x €28.00 €2,800
    €22,400 value of closing stock

    The total cost price of units sold is €52,000
    The total cost price of all units purchased is €74,000
    The total value of closing stock is €22,000

    tammietoes's Avatar
    tammietoes Posts: 19, Reputation: 2
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    #3

    Nov 25, 2010, 06:33 AM
    Comment on tammietoes's post
    Sorry the attachment would't work so I've added the workings above.
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