Category Inventory

Gross Margin Method

Under this method, we estimate the ending figure of the closing inventory based on the gross profit percentage. In this approach, we assume that the gross profit % remains constant during the reporting period. This method is also known as…

Standard Price Method

Under this method, we calculate a pre-determined price, and this price is kept constant for a definite time period. In this method of inventory valuation, we post all receipts into the stock ledger account and sales/ issues are valued at…

First In, First Out (FIFO) Method

There are several methods of inventory valuation and FIFO is one of them. Under this method, we assume that items purchased first are also sold first. It means that the remaining inventory/closing inventory is the one which is purchased/ manufactured…

Replacement Price Method

Replacement Price Method is a very effective tool when the entity wants to reflect the current price in cost. By replacement price we mean the price at which the materials would be replaced, that is the market price at the…

Last In, First Out (LIFO) Method

There are several methods of inventory valuation and LIFO is one of them. Under this method, we assume that items purchased last are also sold first. It means that the remaining inventory/closing inventory is the one which is purchased/ manufactured…

FIFO Method Problems and Solutions

We have covered FIFO Method of inventory valuation in great detail. In examination, numerous types of questions are asked. That is why, it is the right time to practice FIFO Problems and check with our answers. Problem Zubi Plc is a furniture…

LIFO Method Problems and Solutions

We have covered LIFO Method of inventory valuation in great detail. In examination, numerous types of questions are asked. That is why, it is the right time to practice LIFO Problems and check with our answers. Problem Zubi Plc is a furniture…