Page 111 - F2 - MA Integrated Workbook STUDENT 2018-19
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Accounting for materials
4.1 First In, first out
Example 5
Date Receipts Issues Balance
Qty Per Value Qty Per Value Qty Value
unit unit
01/08 150 $150
03/08 200 $1.20 $240 350 $390
09/08 150 $1.00 $150
100 $1.20 $120
–––– –––– ––––
250 $1.08 $270 100 $120
13/08 250 $1.30 $325 350 $445
16/08 100 $1.20 $120
100 $1.30 $130
–––– –––– ––––
200 $1.25 $250 150 $195
Advantages Disadvantages
FIFO Up to date closing inventory value Out of date valuation on issues to
as the recent priced items remain in production as old prices are used to
inventory. value issues to production.
Identical jobs may have different
costs.
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