Accounting 9706 · AS & A Level · Traditional costing methods

Traditional costing methods — practice question

A business values its inventory using the First In First Out (FIFO) method. The inventory movements listed below occurred over one month, and there was no opening balance. 1 July: 100 units were received at $15.50; 6 July: 100 units were received at $15.60; 10 July: 80 units were issued; 20 July: 50 units were received at $15.80; 25 July: 100 units were issued. What was the inventory value at the end of the month?

  • A$1085
  • B$1092
  • C$1102
  • D$1106

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