In which method production is charged at recent prices?

1.	In which method production is charged at recent prices?
Answer» ANSWER: The important methods followed in pricing of issue of materials are:- 1. Actual Cost Method 2. First-In First-Out (FIFO) Method 3. Last-In First-Out (LIFO) Method 4. Highest-in First-Out (HIFO) Method 5. Simple Average Cost Method 6. Weighted Average Cost Method 7. Periodic Average Cost Method 8. Standard Cost Method 9. Replacement Cost Method 10. Next in First Out (NIFO) Method 11. Base Stock Method. 1. Actual Cost Method: Where materials are purchased specially for a specific job, actual cost of materials is charged to that job. Such materials will NORMALLY be stored separately and issued only to that particular job.

Answer»

The important methods followed in pricing of issue of materials are:- 1. Actual Cost Method 2. First-In First-Out (FIFO) Method 3. Last-In First-Out (LIFO) Method 4. Highest-in First-Out (HIFO) Method 5. Simple Average Cost Method 6. Weighted Average Cost Method 7. Periodic Average Cost Method 8. Standard Cost Method 9. Replacement Cost Method 10. Next in First Out (NIFO) Method 11. Base Stock Method.

1. Actual Cost Method:

Where materials are purchased specially for a specific job, actual cost of materials is charged to that job. Such materials will NORMALLY be stored separately and issued only to that particular job.

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