Discuss the FIFO price method of costing of stock issued and valuation of stock

in hand.

FIFO (First-In-First-Out) is a widely used method of costing inventory for both stock issued (cost of goods sold) and valuation of remaining stock (ending inventory). It follows the principle that the first items purchased or produced are the first to be consumed or sold. Let's discuss how FIFO is applied for costing of stock issued and valuation of stock in hand:

FIFO for Costing of Stock Issued (Cost of Goods Sold):

1. Selection of Items for Sale:
   • When goods are sold, the cost of the earliest (oldest) inventory items that were acquired or produced first is used to calculate ______ _________ ___ _______ ________ _____ _________ ______ ______ __________ ______.
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