We have received Raw material on 01/01/2018 which has expired on 2020 and after two months we have received another consignment on 01/04/2018 with the expiry 2019.
We have dispensed from 01/01/2018 to till 31/03/2018 from the first consignment which has expiry date of 2020 and left with some quanity. Now we have to dispense the material on 01/04/2018 of the same material.
By following the FIFO you have to dispense the material received on 01/01/2018. if you follow FEFO then you need to dispense the second consignment as the expiry date is on 2019.
Now the question is which method to be followed .