## Weighted average method of material costing

Definition of Weighted average method of material costing In weighted average cost method, average cost of materials purchased is charged to job or process rather than the actual cost. In other words, it is assumed that where a material is purchased at different prices the cost of a unit of such material will be the …

## Last in First out (LIFO) method of Inventory Valuation

Definition of Last in First out Method Last in First out (LIFO) is an inventory costing method that assumes that the costs attached to the latest purchases are the cost of the first item sold. The last in first out method (LIFO) of inventory valuation is a method under which the materials used in a job …

## First in first out method of costing (FIFO)

Definition of First in First out (FIFO) Method of Costing First in First out (FIFO)  is an inventory costing method that assumes that the costs attached to the first goods purchased are the costs of the first goods sold. The principle as to flow of cost followed by first in first out (FIFO) method of …

## Valuation of inventories and their record

Cost of material used does not create any problem if every item of like kind of materials is purchased at the same price. In actual practice however the market condition is not stable, there is fluctuation in the prices. Thus store ledger cards of a given item of material will show different prices of material, …

## Material ledger card

Definition and Explanation Costing means determining cost. Costing for materials includes the study of different methods, for calculation of cost of receipt, cost of issues of materials and cost of the returns. better cost of materials ledger cards is maintained for all items of materials. Material ledger card is also called as store ledger card. The …

## Material costing methods – MCQs

Take a quick Multiple Choice Questions (MCQs) test about Material costing methods. These MCQs can help you to prepare for your exams, interviews and different tests. Just click the “start quiz” button and start material costing methods MCQs quiz. You can also check: Material costing methods short questions Material costing methods fill in the blanks