Start networking and exchanging professional insights

Register now or log in to join your professional community.

Follow

How to effectively use a FIFO format in controlling stock?

user-image
Question added by michael oyeleso , Inventory Officer , SID
Date Posted: 2013/07/01
AYAJ MULLA
by AYAJ MULLA , Section head warehouse inventory , Saudi cement co.

Commonly used to calculate the value of inventory on hand at the end of a period and the cost of goods sold during the period.
This method assumes that inventory purchased or manufactured first is sold first and newer inventory remains unsold.
Thus cost of older inventory is assigned to cost of goods sold and that of newer inventory is assigned to ending inventory

hammad hassan
by hammad hassan , Assistant Manager Stores& warehouse , Safi Impex

First-In, First-Out (FIFO) is one of the methods commonly used to calculate the value of inventory on hand at the end of a period and the cost of goods sold during the period.
This method assumes that inventory purchased or manufactured first is sold first and newer inventory remains unsold.
Thus cost of older inventory is assigned to cost of goods sold and that of newer inventory is assigned to ending inventory.
The actual flow of inventory may not exactly match the first-in, first-out pattern.

More Questions Like This