Applying FIFO
1-4 goog purchase 90 unit @ 10
2-4 good purchase 100 unit @ 11
4-4 good sold 190 unit @ 14
6-4 good purchase 50 unit @ 9
8-4 good return by customer 20 unit
9-4 good sale 10 unit @ 14
10 unit sold from which date 2-4 , 6-4 ?
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Valuation of good applying FIFO
Replies (5)
Quick Summary
FIFO- First purchased inventory will be first processed and sold first. So 190 purchases- 190 sales. 20 units returned because they are faulty. Next new purchases is on 6-4 and the 10 units were sold from 6-4.
We are received good on date 8-4 from customer ( i.e good return) & that good we purchased at 2-4 so why from 6-4
8-4 does sales returns are for 4-4 goods sold and that is the only date on which sales occurred. Once inventory is returned, it is written off if it is badly damaged. Since, no additional information is given, we must consider it as badly damaged goods. So, 9-4 Sales is from 6-4 Purchases.
But it is assumed that sale return good will be saleable at market rate and no any defect found in good so that ?
No information is given
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