Accounting 9706 · AS & A Level · Traditional costing methods

Traditional costing methods — practice question

A company gave the information below: opening inventory $100$ units at $\$2.00$ per unit; a further receipt of inventory of $400$ units at $\$2.10$ per unit; and $200$ units issued to production. The company uses the first in first out (FIFO) method for valuing inventory. What is the material cost of the units issued to production?

  • A$400
  • B$410
  • C$416
  • D$420

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