Calculate the value of closing stock from the following according to FIFO method 5th ...........

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

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Calculate the value of closing stock from the following according to FIFO method:

5^th January, 2018: Opening balance: 50 units @ Rs. 4

Receipts:

January 6^th, 2018: 100 units @ Rs. 5

January 15^th, 2018: 200 units @ Rs. 4.50

Issues:

January 10^th, 2018: 30 units

January 17^th, 2018: 150 units

Rs. 765

Rs. 805

Rs. 786

Rs. 700

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Explanation:

In First in First Out (FIFO) the material purchased first is consumed first and thus the closing stock represents the material purchased later than that, which is issued. This method uses the cost of the first batch of material purchased for all issues until all material from this batch is completely issued. After the first batch of material is fully exhausted, the cost of the next batch becomes the issue price. In give problem, closing stock will be: 170 units x 4.50= 765/-