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Fifo vs lifo

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Fifo vs lifo

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MeraSkill.com Online preparation for CA CPT,CS & CMA Foundation exam FIFO vs LIFO MeraSkill.com Online preparation for CA CPT,CS & CMA Foundation exam
MeraSkill.com Online preparation for CA CPT,CS & CMA Foundation exam FIFO VS LIFO A trader purchases plastic containers as follows: 1st January : 1000 containers @ Rs 50 each 15th January: 2000 containers @ Rs 55 each 21st January: 700 containers @ Rs 60 each 31st January: 1300 containers @ Rs 62 each Assuming that there was opening inventory of 500 containers @ Rs 48 each and the sales for January amounted to 4500 containers @ Rs 75, determine the closing stock, cost of goods sold and profit under FIFO and LIFO methods of inventory valuation. FIFO LIFO a) Sales 3,37,500 3,37,500 b) Opening inventory 24,000 24,000 c) Purchases 2,82,600 2,82,600 d) Closing inventory 62,000 49,000 e) COGS (b+c-d) 2,44,600 2,57,600 f) Profit 92,900 79,900
MeraSkill.com Online preparation for CA CPT,CS & CMA Foundation exam © MeraSkill Historical Cost Methods FIFO Valued at latest price Valued at earlier price Higher profits Lower profits Acceptable method LIFO Valued at earlier prices Valued at latest prices Lower profits Higher profits Not acceptable Comparison 1. Closing Inventory 2. COGS 3. Effect of Inflation 4. Effect of Deflation 5. Accounting Standards
MeraSkill.com Online preparation for CA CPT,CS & CMA Foundation exam Watch Full Video course & take quiz visit https://www.meraskill.com https://meraskill.com/ca-cpt/cpt-notes https://meraskill.com/ca-cpt/cpt-exam http://www.meraskill.com/cpt-question-paper https://meraskill.com/ca-cpt/cpt-syllabus https://www.meraskill.com/fridayrelease MeraSkill.com Online preparation for CA CPT,CS & CMA Foundation exam

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Fifo vs lifo

  • 1. MeraSkill.com Online preparation for CA CPT,CS & CMA Foundation exam FIFO vs LIFO MeraSkill.com Online preparation for CA CPT,CS & CMA Foundation exam
  • 2. MeraSkill.com Online preparation for CA CPT,CS & CMA Foundation exam FIFO VS LIFO A trader purchases plastic containers as follows: 1st January : 1000 containers @ Rs 50 each 15th January: 2000 containers @ Rs 55 each 21st January: 700 containers @ Rs 60 each 31st January: 1300 containers @ Rs 62 each Assuming that there was opening inventory of 500 containers @ Rs 48 each and the sales for January amounted to 4500 containers @ Rs 75, determine the closing stock, cost of goods sold and profit under FIFO and LIFO methods of inventory valuation. FIFO LIFO a) Sales 3,37,500 3,37,500 b) Opening inventory 24,000 24,000 c) Purchases 2,82,600 2,82,600 d) Closing inventory 62,000 49,000 e) COGS (b+c-d) 2,44,600 2,57,600 f) Profit 92,900 79,900
  • 3. MeraSkill.com Online preparation for CA CPT,CS & CMA Foundation exam © MeraSkill Historical Cost Methods FIFO Valued at latest price Valued at earlier price Higher profits Lower profits Acceptable method LIFO Valued at earlier prices Valued at latest prices Lower profits Higher profits Not acceptable Comparison 1. Closing Inventory 2. COGS 3. Effect of Inflation 4. Effect of Deflation 5. Accounting Standards
  • 4. MeraSkill.com Online preparation for CA CPT,CS & CMA Foundation exam Watch Full Video course & take quiz visit https://www.meraskill.com https://meraskill.com/ca-cpt/cpt-notes https://meraskill.com/ca-cpt/cpt-exam http://www.meraskill.com/cpt-question-paper https://meraskill.com/ca-cpt/cpt-syllabus https://www.meraskill.com/fridayrelease MeraSkill.com Online preparation for CA CPT,CS & CMA Foundation exam