Inventory Valuation Methods | FIFO | LIFO | Weighted Average Price

 

Inventory Valuation Methods 

Question :-1-How Many types of Inventory Valuation Methods?

Answer:-There are three types of Inventory Valuation methods.

A-FIFO-First In First Out

B-LIFO-Last In First Out

C-WAP-Weighted Average Price

How to Calculate - Ex-Material : Cement 

Month	Receipt	Rate	Value	Issue	Balance
Jan-21	500	250	125000	400	100
Feb-21	600	260	156000	600	100
Mar-21	700	255	178500	500	300
Apr-21	800	280	224000	750	350
May-21	400	285	114000	550	200
Jun-21	1000	270	270000	800	400
Jul-21	600	265	159000	400	600
Total	4600		1226500	4000
FIFO- 600*265=159000.00
LIFO- 600*250=150000.00
WAP-1226500/4600=266.63 Value-600X266.63=159978.00
WAP-	Total Stock Value/Total Stock Qty