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FIFO

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We have two factories (under one legal entity) and we use FIFO costing for the transactions ,

Factory A , Item 1 - procured 10 Pcs at 10 USD

Factory B , Item 1  - procured 10 Pcs at 15 USD

 

Day1 - Factory A will transfer item 1 temporarily to Factory C to do the production (this is not a ownership transfer).

Day2 - Factory B will transfer item 1 temporarily to Factory C to do the production (this is not a ownership transfer).

 

 Day3 - Factory B will recall the Qty what they have transferred to Factory C.

* @ FIFO rule - Factory C will return the material 10 Pcs @ 12.5 USD (which is at weighted average) after the inventory closing belong done it will re calculated to FIFO. which would be 10 Qty @ 10 USD.

 

Is there a way that factory C can return the qty at 15USD ?

 

 

 

 

 


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