Please help me Describe the first-in first-out (FIFO) inventory cost method. Exp

Question

Please help me Describe the first-in first-out (FIFO) inventory cost method. Explain and provide examples of real life inventory that would be used for the first-in first-out (FIFO) inventory cost method. (In 100 words) Thank you Please help me Describe the first-in first-out (FIFO) inventory cost method. Explain and provide examples of real life inventory that would be used for the first-in first-out (FIFO) inventory cost method. (In 100 words) Thank you Describe the first-in first-out (FIFO) inventory cost method. Explain and provide examples of real life inventory that would be used for the first-in first-out (FIFO) inventory cost method. (In 100 words) Thank you

Explanation / Answer

First in first out Method means reduce the inventory first according to date of their purchase. suppose you have purchased some inventroy on 1st april -10 nos at unit price of $100 each and on 7 th april you have purchased 10 nos at unit price $150 each and forst sale occur in dated 13th april for 5 Nos then you have to reduce stock of first purchase i.e 5 nos at unit price of $100 each . This is called first in first out method. Whatever purchase first that will be sale first. Items that are Perishable in nature use FIFO method.(i.e Vegitables)

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.