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FIFO stands for First-in-First-out, this means any merchandise that comes in first will be sold at that specific price first. For example, say I have candy bars, I have 50 on hand that cost me 85 cents, I later purchased 50 more that cost me 1.00. When I sale my products, say I sold 75, my inventory would go like this to figure out what I have on hand.
My original inventory is
50 @ .85 = 42.50
50 @ 1.00 = 50.00
Total ______92.50
Since I sold 75 bars total and I'm using FIFO, that means the first ones I purchased go out first....
50 @ .80 = 42.50
25 @ 1.00 = 25.00
Total______ 67.50
This leaves us on hand
25 @ 1.00 = 25.00
What else can I help you with?
How do the implications of using lifo and fifo inventory affect the cost of goods sold?
LIFO stands for Last In First Out, so the last piece of inventory you create (including the costs for that last piece of inventory), is the cost base you use when you match sales against costs of goods sold (COGS) FIFO stands for First in First Out, so the oldest piece of inventory you have is what you match against your next sale. So, in a period of increasing input prices to your production (which is the general norm), under a LIFO model, you'll see higher prices immediately impacting your COGS, whereas under a FIFO model, it will take some time before those higher costs are impacting your COGS.
How do you determine the value of Ending Inventory do you use the value the inventory was purchase at or the value of the inventory at the months end?
Hello - I use the value the inventory was purchased at. If you need to, then you can devalue the inventory by stating a write down on obsolete goods, or alternatively, product that you will have to take a discount on. Technically, you have a few options - LIFO (last in, first out), FIFO most common - First in, first out, and average - average is not GAAP in Canadian accounting, but is workable in the states. Hope this helps you!
Why is it best to sell inventory for less than the amount paid for it?
It is NOT best. But if there is an urgent need for capital to buy fresh inventory and current inventory is not selling, some businesses will take the loss.
What is the main advantage of using the midpoint method for calculating elasticity?
When we compute price elasticity between any two points on a demand curve, we get a different answer depending on which point we choose to start and which point we choose to finish if we take the change in price and quantity as a percent of the starting value for each. With the midpoint method, the percentage changes in quantity and price are calculated by dividing the change in the variable by the average or midpoint value of the two points on the curve, not the starting point on the curve. In other words, it avoids the problem of getting a different answer when we computer price elasticity between any two points on a demand curve and it calculates by dividing the change in the variable by the midpoint value of the two points on the curve instead of the starting point on the curve. That is the advantage of using the midpoint method for calculating elasticity.
What are the list of many actions you can take using the federal reserve?
open market operations
How do the implications of using lifo and fifo inventory affect the cost of goods sold?
LIFO stands for Last In First Out, so the last piece of inventory you create (including the costs for that last piece of inventory), is the cost base you use when you match sales against costs of goods sold (COGS) FIFO stands for First in First Out, so the oldest piece of inventory you have is what you match against your next sale. So, in a period of increasing input prices to your production (which is the general norm), under a LIFO model, you'll see higher prices immediately impacting your COGS, whereas under a FIFO model, it will take some time before those higher costs are impacting your COGS.
Is it necessary to take a physical inventory when using the perpetual inventory system?
Yes
How do you determine the value of Ending Inventory do you use the value the inventory was purchase at or the value of the inventory at the months end?
Hello - I use the value the inventory was purchased at. If you need to, then you can devalue the inventory by stating a write down on obsolete goods, or alternatively, product that you will have to take a discount on. Technically, you have a few options - LIFO (last in, first out), FIFO most common - First in, first out, and average - average is not GAAP in Canadian accounting, but is workable in the states. Hope this helps you!
Is the Retail Inventory Method accurate?
It is as accurate as any inventory method. It is much easier to take inventory at retail if you are on the floor counting the items because they are priced at retail. When you reconcile the number of units on hand vs the number purchased, you will know how many you sold or are not accounted for in the sales records. The term for those missing items is "shrinkage" and is a factor in GMROI. Theft of merchandise, mark downs and paperwork errors contribute to shrinkage....one important reason to take inventory. The problem with cost inventories (from my view) is that discounts, volume pricing and other variances to the cost of like items makes it hard for the inventory taker to determine which one was purchased at one cost, and which one at another. If the merchandise tags are coded and inventoried using those codes, the cost can be applied post inventory. A complete and accurate count, no matter how you do it, is what matters.
What is deterministic access method?
When using the controlled access method, network devices take turns, in sequence, to access the medium.
What does analysis in the economic-order quantity method of inventory management take into account?
This analysis considers the amount of time needed to generate an order; to process, manufacture, organize, and ship each product; to receive, inventory, store, and consume each product
Can you put inventory in a sentence?
Yes, I'll stay late to take inventory.
How do you put an inventory box on your gaiaonline post?
Take a picture using the "Print Screen" button. Paste onto a paint window and upload on Photobucket.
Why is it important to take an inventory of what you know?
It is important to sometimes take inventory of what a person knows. This is important because it can remind you of some important things.
What is deterministic access?
When using the controlled access method, network devices take turns, in sequence, to access the medium.
How do you take inventory?
1...2...3...4...
Is there an inventory test that you have to take to get into the Coast Guard?
Yes
