Accounting 9706 · AS & A Level · Traditional costing methods

Traditional costing methods — practice question

The inventory information for a company is given below: Inventory on 1 January 2016: $100$ kilos at $100$ per kilo (total cost $10000$). Purchases in January 2016: $200$ kilos at $105$ per kilo (total cost $21000$). Purchases on 1 February 2016: $300$ kilos at $110$ per kilo (total cost $33000$). $400$ kilos were still held as inventory at the end of February 2016. The company applied FIFO when valuing its inventory. What was the inventory value at the end of February?

  • A$40000$
  • B$42667$
  • C$43500$
  • D$44000$

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