Accounting 9706 · AS & A Level · Traditional costing methods

Traditional costing methods — practice question

The details below relate to direct materials for one month: Opening inventory: $1\,000$ kg at $20$ per kg Purchases: $20\,000$ kg at $22$ per kg Closing inventory: $3\,500$ kg Inventory is measured by the first in, first out (FIFO) method. What was the cost of materials issued to production during the month?

  • A$363\,000$
  • B$367\,500$
  • C$383\,000$
  • D$385\,000$

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