<\/span><\/h2>\n1. FIFO Method (First-In-First-Out)<\/b>: This method assumes that the goods purchased or produced first are the ones sold first. The value of closing stock is determined by the cost of the most recent purchases.<\/p>\n
2. LIFO Method (Last-In-First-Out)<\/b>: Unlike FIFO, the LIFO method assumes that the latest purchases are the ones sold first. The value of the closing stock is determined by the cost of the oldest purchases.<\/p>\n
3. Weighted Average Cost Method<\/b>: Under this method, the value of closing stock is calculated by finding the average cost per unit of all items available for sale during the period.<\/p>\n
4. Specific Identification Method<\/b>: This method is used when each item in the closing stock can be identified with a specific cost. The value of the closing stock is simply the sum of the costs of the individual items.<\/p>\n
5. Retail Method<\/b>: Primarily used in the retail sector, this method involves calculating the closing stock value based on the cost-to-retail ratio by considering the ratio of the cost of goods sold to the retail price of the goods available for sale.<\/p>\n
6. Market Value Method<\/b>: In this method, the value of closing stock is determined based on its current market value. It considers factors such as market demand, obsolescence, and any decline in market price.<\/p>\n