00:02
Let's see first in first out method and on february 1st beginning inventory is given which is 100 units at at dollar 10 per unit.
00:26
So it is equals to dollar 1000.
00:29
Now on february 6th purchase inventory is 50 unit at dollar 12 per unit.
00:49
So it is equals to dollar 600.
00:52
Now 8th of snap sold inventory 70 units.
01:02
We need to determine the cost of these units.
01:06
Since we are using fifo the first 70 units will come from the beginning inventory.
01:13
So the cost of goods sold for these 70 units will be 70 units multiplied by dollar 10 per unit.
01:29
So it is equals to dollar 700.
01:32
Now 15th of fab purchased inventory is 100 units at the rate of dollar 13 per unit.
01:52
So it is equals to dollar 1300.
01:56
Now 20th of february sold inventory is 100 units.
02:07
We need to determine the cost of these units.
02:10
The remaining 30 units from the beginning inventory.
02:14
So here 100 minus 100 minus will be 70 will be sold first followed by 50 units from the fab 6 purchase and finally 20 units from the fab 15 purchase.
02:28
So here 30 units is multiplied by dollar 10.
02:34
So it is equals to dollar 300 .50 units then sorry only 300 will come here 300 unit dollar 300.
02:49
Now 50 units multiplied by dollar 12 per unit.
02:56
So it is come equal to dollar 600.
02:59
Now 20 units will be multiplied by dollar 13.
03:05
So it is equals to dollar 260.
03:08
Total cost of goods sold for these 100 units is equals to dollar 300 plus dollar 600 plus dollar 260.
03:23
So it is equals to dollar 1160.
03:28
Total cost of goods sold using fifo cost of goods sold using fifo is equals to fab dollar 700 which is of fab 8 plus dollar 1160 which is of fab 20.
04:00
So it is equals to dollar 1860.
04:05
Now we are going to calculate the weighted average.
04:11
Calculated the weighted average cost per unit it is equals to total cost of inventory before fab 8 sale...