Accounting 9706 · AS & A Level · Traditional costing methods

Traditional costing methods — practice question

On 1 March, the business held 3 items of inventory, and each item had cost $8$. The business values inventory using the FIFO method. The following transactions took place in March: Purchases: - 10 March: 16 units at $7$ each - 18 March: 14 units at $6$ each Issues: - 27 March: 24 units at $10$ each What was the value of inventory at the end of March?

  • A$36$
  • B$42$
  • C$54$
  • D$63$

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