A trader has an opening stock of 100 units at Rs 10, buys 200 units at Rs 10 and then 200 units at Rs 12. He sells 250 units. What is the value of closing stock under FIFO?
Answer and explanation
Correct answer: C. Rs 2,900
- Step 1: Under FIFO the earliest units are sold first, so the closing stock consists of the latest purchases.
- Step 2: Closing units = 250; their value at the latest cost = 2900.
Answer
Rs 2,900.
Practise more Inventory and Final Accounts.
Free questions with an explanation for every one, and full timed CA Foundation mock tests.