The FlyOnTheWall company made the following purchases of camera components:
$$\begin{array} { l l l l r }
\text { Date } & \text { Units } & \text { Cost price per unit } & \text { Amount } & \text { Total } \
1 \text { st Feb } & 800 & £ 10 & 8,000 & 8,000 \
15 \text { th Feb } & 1,000 & f 9 & 9,000 & 17,000 \
25 \text { th Feb } & 6,000 & £ 11 & 6,600 & 23,600
\end{array}$$
The company took out a job on the 27th February,using 1,200 components.Show the price charged for the job under the first in first out approach (FIFO)

Question

The FlyOnTheWall company made the following purchases of camera components:
$$\begin{array} { l l l l r } 
\text { Date } & \text { Units } & \text { Cost price per unit } & \text { Amount } & \text { Total } \
1 \text { st Feb } & 800 & £ 10 & 8,000 & 8,000 \
15 \text { th Feb } & 1,000 & f 9 & 9,000 & 17,000 \
25 \text { th Feb } & 6,000 & £ 11 & 6,600 & 23,600
\end{array}$$
The company took out a job on the 27th February,using 1,200 components.Show the price charged for the job under the first in first out approach (FIFO)

Quizplus · Accepted Answer

Under the FIFO approach, the first items purchased are the first ones to be used. The calculation for 1,200 components would be: 800 units at £10 = £8,000, and 400 units from the next purchase at £9 = £3,600. Adding these amounts gives a total of £11,600.

The FlyOnTheWall Company Made the Following Purchases of Camera Components