Answer:
Explanation:
FiFo:
fifo means first come first out, goods purchased first are sold first.
Date Units
opening 115
5-Mar 245
18-Mar 95
25-Mar 135
assume company sold 150 units under the fif method we dispose as follows
1st we will sell 115 opening units reaming 45 units from 245 merch 5th purchase. remaining units cost will be closing stock cost.
Lifo :
under the lifo method the goods purchased earliest will be sold first continuing with above example disposal of units will be as follows:
first of all we sell earliest purchased goods those are 25th march goods 135 units remaining 15 units will be sold from 18th purchases 95 units.
the closing cost of goods will be the =opening +5th march purchases and 18th march 80 units.
weighted average:
under the weighted average units are mixed and their cost is calculated on the basis of total cost divided by total units. goods sold can be from any of previous purchases.
continuing with the above example disposal of 150 units will be the mixture of total purchases and it can be from specific purchases.
the closing cost of goods will be the = remaining units and their cost
specific identification:
under the specific method no rules are followed goods are sold on the will of entity they can be from any date as specified in the question and closing cost of the goods will be the remaining purchases and their relevant cost of units.
