Accounting 9706 · AS & A Level · Preparation of financial statements

Preparation of financial statements — practice question

A business values its inventory by the FIFO method. The transactions below occurred: April opening inventory $700$ at $190$ each; May purchases $500$ at $220$ each; June sales $400$ at $400$ each. What was the closing inventory value at the end of June?

  • A$152\,000$
  • B$162\,000$
  • C$167\,000$
  • D$176\,000$

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