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azharali481

azharali481

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Price: $9.00
  • From: ,
  • Posted on: Tue 17 Sep, 2013
  • Request id: # 25213
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Solution Description

inventory value at the end of the year, assuming FIFO = 1000*17 + 300*21 + 500*23 - 800*17 -200*17 -200*21 =$13600 inventory value at the end of the year, assuming LIFO = 1000*17 + 300*21 -300*21 -500*17 + 500*23 -400*23 =$10800 Advantages and disadvantages of FIFO Method The key advantages of FIFO method are mentioned below: The key advantage of FIFO method lies in its being simple and easy to understand and operate. It is a coherent method for it takes into consideration the normal procedure of utilizing the first received materials being used first. Materials are issued in the order of purchases, and thus the materials used first are utili