1 oct Opening balance=400 units @Rs 20 each, 3 Oct:Purchase=300 units @Rs 10 ,5 Oct Sales=500 units.What will be total Sales value(in Rs) as per FIFO Method?
A)Rs 9000
B)Rs 15000
C)Rs 10000
D)Rs 7500

Question

Quizplus · Accepted Answer

FIFO (First In First Out) method assumes that the first units purchased are the first units sold.Opening balance: 400 units @ Rs 20 each = Rs 8000Purchase on 3 Oct: 300 units @ Rs 10 each = Rs 3000Total units available for sale = 700 unitsSales on 5 Oct: 500 unitsCost of goods sold (FIFO):- 400 units from opening balance @ Rs 20 each = Rs 8000- 100 units from purchase on 3 Oct @ Rs 10 each = Rs 1000Total sales value (FIFO) = Rs 8000 + Rs 1000 = Rs 9000

1 Oct Opening Balance=400 Units @Rs 20 Each, 3 Oct:Purchase=300