Page 112 - F2 - MA Integrated Workbook STUDENT 2018-19
P. 112
Chapter 5
4.2 Last in, first out
Example 6
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
09/08 200 $1.20 $240
50 $1.00 $50
–––– –––– ––––
250 $1.16 $290 100 $100
13/08 250 $1.30 $325 350 $425
16/08 200 $1.30 $260 150 $165
Advantages Disadvantages
LIFO Up to date valuation on issues as Out of date closing inventory value as
the recent priced items are used to old prices as used to value inventory.
value issues to production.
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