Hi Community,
I would like to find out regarding Costing Method, specifically FIFO and Standard.
My client can't decide which of this 2 costing method to use .
The scenario is like this:
His company purchase medicine from supplier by batches. The medicine all have expiration dates.
1st batch - $20 per bot, 2nd batch $23 per bot.
Now there will be times whereby, the business will have charity events while they are selling the medicines.
The goods for the charity goods can be using the 2nd batch before the first batch is used up.
In this scenario, especially considering the 2nd batch will be used before the first batch, which Costing methods between FIFO or Standard should we use?
Hope this makes sense.
Thank you!
