In which method of material issue the material purchased in last lot is issued and consumed first ........

Costing - Phase (I & II) Basics of Cost Control and Analysis

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In which method of material issue, the material purchased in last lot is issued and consumed first:

First in First Out (FIFO)

Last in First Out (LIFO)

Highest in First Out (HIFO)

Base Stock Method

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Explanation:

In Last in First Out (LIFO), the material purchased in the last lot is consumed first and thus the closing stock represents the material purchased first. According to this method, the price of the last batch of material purchased is charged for all issues of material, until all units from the last batch have been issued, after which the price of the previous batch of material purchased is charged.