Accounting 9706 · AS & A Level · Traditional costing methods

Traditional costing methods — practice question

The changes in a business’s inventory over a 3-month period are shown below. (date / units received / cost per unit / units issued) January: 100 units were received at $5; January: a further 200 units were received at $6; February: 50 units were issued; March: 200 units were issued. The business applies the first in first out (FIFO) method when valuing inventory. Calculate the value of inventory at the end of March.

  • A$250
  • B$275
  • C$283
  • D$300

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