Perpetual FIFO Inventory Method Example, Concept, Illustration, Sample Help Online
Looking for Perpetual FIFO Inventory Method Example, Concept, Illustration and Calculation to do your assignment, homework or project then you are at the correct place.
Meaning of Perpetual FIFO Inventory Method
Under this method it is assumed that the goods are sold in the order in which they are purchased. It means they are charged against revenues in the order in which they are incurred.The Ending inventory represents the most recent costs incurred to purchase merchandise or materials.
Services We Offer
Services Provided for Accounting
Accounting always put student on worries and stress. But with Assignment Consultancy for your help, you can remove all your worries by going through our various services:-
- Financial Accounting Homework Help
- Accounting Assignment Help Online
- Financial Accounting Assignment Help
- Managerial Accounting Homework Help
- Do my accounting Homework
- Accounting Case Study Assignment Help
- Finance accounting case studies assignment help
- Taxation homework help
- US tax codes homework help
- Advance Accounting homework help
- Cost Management Homework Help
- Australian Taxation Assignment help
- Ratio analysis assignment help
- Accountancy online exam help
- Accounts online exam help
Features for Accounting Assignment Help Services
We believe in providing no plagiarism work to the students. All are our works are unique and we provide Free Plagiarism report too on requests.
Best Customer Service
Our customer representatives are working 24X7 to assist you in all your assignment needs. You can drop a mail to email@example.com or chat with our representative using live chat shown in bottom right corner.
Three Stage Quality Check
We are the only service providers boasting of providing original, relevant and accurate solutions. Our three stage quality process help students to get perfect solutions.
All our works are kept as confidential as we respect the integrity and privacy of our clients.
Most of our clients are from UK, USA, Australia, Canada , UAE, New Zealand, Doha, Qatar, Muscat, Netherlands, France, Italy, Great Britain, Singapore, Malaysia looking for quality and accurate solutions.
Yash Batra, Student , UK University
“Great Experts to provide real time Accounts help services. They are just best in their approach”
Reham Fayad, Student MBA, USA
“They have some of the best USA experts to provide Accounts help online and also help me in my online exams.”
Graham Golith, Lancashire University, UK
“Best place to get all help in Accounts Essay and Exams. Will definitely recommend to all”
Perpetual FIFO Inventory Method Example Explanation
Understanding Perpetual FIFO Inventory Method through an example.
Example: the following is the information of a company showing perpetual FIFO inventory valuation
Date units purchased units sold cost per unit inventory units
June 1 beginning inventory 700 $10 700
June 3 purchase 100 $12 800
June 8 sale 500 300
June 15 purchase 600 $14 900
June 19 purchase 200 $15 1,100
June 25 sale 400 700
June 27 sale 100 600
June 30 ending inventory
(*1) 500 units sold
= 700 units from beginning inventory of at $10cost per unit.
Cost of goods sold = 500x$10 = $5,000
(*2) 400 units sold
= 200 units from beginning inventory at $10 cost per unit
+ 100 units from June 3 purchases at $12 cost per unit
+ 100 units from June 15 purchases at $14 cost per unit
Cost of goods sold = 200x$10 + 100x$12 + 100x$14
= $2,000 + $1,200 + $1,400 = $4,600
(*3) 100 units sold
= 100 units from June 15 purchases at $14 cost per unit
Cost of goods sold = 100x$14 = $1,400
Total cost of goods sold
= 500x$10 + 200x$10 + 100x$12 + 100x$14 + 100x$14
= $5,000 + $2,000 + $1,200 + $1,400 + $1,400
= $5,000 + $4,600 + $1,400 = $11,000
Cost of ending inventory
= Beginning inventory + Cost of purchases – Cost of goods sold
= $7,000 + (100x$12 + 600x$14 + 200x$15) – $11,000
= $7,000 + $12,600 – $11,000 = $8,600
If you are looking for similar Perpetual FIFO Inventory Method Examples type assignment, click here . You can visit us for more examples here.