Camila Cabello 11,450 Posted February 26, 2015 Share Posted February 26, 2015 Can someone pls explain to me how Weighted average and FIFO work? both perpetual and periodic here is the table i was given Link to comment Share on other sites More sharing options...
Manila Luzon 2,003 Posted February 26, 2015 Share Posted February 26, 2015 Oh this is the part last semester when I wanted to cry, quit, and become a hooker. Link to comment Share on other sites More sharing options...
TheVirginThotty 3,905 Posted February 26, 2015 Share Posted February 26, 2015 -pulls out my book and blows off the dust- THOT IS HERE TO SAVE THE DAY seriously brb... Link to comment Share on other sites More sharing options...
Camila Cabello 11,450 Posted February 26, 2015 Author Share Posted February 26, 2015 -pulls out my book and blows off the dust- THOT IS HERE TO SAVE THE DAY seriously brb... pls saviour help meeee I need to get this accounting mark for my escape Link to comment Share on other sites More sharing options...
oye123 1,615 Posted February 26, 2015 Share Posted February 26, 2015 i hope this site can help http://www.accountingcoach.com/inventory-and-cost-of-goods-sold/explanation/4 periodic FIFO is on page 2 Link to comment Share on other sites More sharing options...
LaY_Yaa 3,316 Posted February 26, 2015 Share Posted February 26, 2015 FIFO stands for First In First Out. *Okey, not helping. Sorry. Bye. Link to comment Share on other sites More sharing options...
TheVirginThotty 3,905 Posted February 26, 2015 Share Posted February 26, 2015 alrighty! Simple explanations: Stock EVALUATION THE UNIT METHOD: A) First In First Out (F.I.F.O) B) Last In First Out (L.I.F.O) C) Average Cost (A.V.C.O) F.I.F.O The first out method of stock valuation assumes the first items bought would be the first items to be sold.. Example: *1 *2 *3 *4 *5 *6 *7 5 were sold, which numbers were left? Closing Stock *6 and *7 (lets assume its money here) = $13 (6+7) L.I.F.O The last in first out method of stock valuation assumes the last items bought would be the first items to be sold Example: *1 *2 *3 *4 *5 *6 *7 5 were sold which numbers were left? Answer: 1 & 2 = $3 A.V.C.O With the average cost method it does not matter the order in which items are sold since the stock would be valued at AVERAGE cost Average cost = Total cost of items divided by the amount of items Example: 1+2+3+4+5+6+7 over 7 (imagine fraction here.. 7 items/numbers so over 7) = 28 over 7 = $4 PICTURE FOR FIFO Okay so on May 1st we have 100 units at $40 each May 10th we purchased 400 more units at $45 each May 15th Purchased another 500 units at $50 each and on May 15th we sold 700 units at $100 each Add up the units you purchased first things first which would be 1000 (500+400+100 = 1000 units) we sold 700 of these units so substract that 700 from the 1000 which leaves us with 300 units in stock F.I.F.O comes in that its FIRST IN FIRST OUT so thus we sell the units we had first MAY 1ST In stock we had 100 units. those are 100 of the 700 that were sent out to be sold = 600 more units May 10th we purchased 400 units. 600 more units were sent out to be sold so thus because we are using F.I.F.O these 400 are assumed to have been the ones sent out since they came in before the other stock we bought after MAY 10TH 600 - 400 leaves us with 200 more units which were sold.. MAY 15TH we bought 500 units so from those 500 units we take away 200 units leaving us with a stock totaled at 300 units. the 300 more in stock comes from the 500 units which were bought at $50 each so 300x50 = $15,000 using the FIFO method we have $15,000 in units left Link to comment Share on other sites More sharing options...
TheVirginThotty 3,905 Posted February 26, 2015 Share Posted February 26, 2015 Here's one more challenging tell me if you understand or if you need me to explain this one (i hope im doing a good job of explaining *cries*) Link to comment Share on other sites More sharing options...
TheVirginThotty 3,905 Posted February 26, 2015 Share Posted February 26, 2015 Oh? Do you need an explanation for AVCO as well? aka an example.. i learnt better from examples Can someone pls explain to me how Weighted average and FIFO work? both perpetual and periodic here is the table i was given Link to comment Share on other sites More sharing options...
Camila Cabello 11,450 Posted February 26, 2015 Author Share Posted February 26, 2015 Oh? Do you need an explanation for AVCO as well? aka an example.. i learnt better from examples if u wanna give examples it helps :3 personally the method explained in short and examples help me a lot LOL im not at AVCO and LIFO yet.....bookmarks this thread THANK U SAVIOUR THOTTY Link to comment Share on other sites More sharing options...
TheVirginThotty 3,905 Posted February 26, 2015 Share Posted February 26, 2015 if u wanna give examples it helps :3 personally the method explained in short and examples help me a lot LOL im not at AVCO and LIFO yet.....bookmarks this thread THANK U SAVIOUR THOTTY AVCO's easy just Here's one more challenging tell me if you understand or if you need me to explain this one (i hope im doing a good job of explaining *cries*) the avco for this example ^^^ Add up all of the units you had aka opening stock + purchases of these units = 800 the 800 is your total stock so that will be your denominator You bought 300 units at $50 each, 200 units at $55 each and $300 units at $60 each thus is where the (300x50) + (200x55) + (300x60) over 800 comes from add all that shit up when your done your multiplying and you get 44,000 over 800 we're trying to find out the average cost of ONE unit so thus you divide that 44,000 by 800 and get $55 Remember when I told you: that for the first example? Do it for every single fifo lifo or avco question...it helps we sold 350 units from the total of 800 units which leaves us with 450 units we're trying to find out the average cost of the remainder units we have..so that 450x$55 = our AVCO of the stock we have left which = 24,750 Now excuse me while I go and cry cause I thought I was through with POA Link to comment Share on other sites More sharing options...
TheVirginThotty 3,905 Posted February 26, 2015 Share Posted February 26, 2015 AND YOU'RE WHALE CUM Link to comment Share on other sites More sharing options...
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