Accounting 9706 · AS & A Level · Traditional costing methods

Traditional costing methods — practice question

The information below concerns a business’s inventory. 2 June: buys $1000$ units at $12$ each 12 June: buys $1000$ units at $13$ each 18 June: sells $800$ units at $18$ each 28 June: buys $1000$ units at $14$ each The estimated unit selling price on 30 June is $20$. There was no inventory at the start. Using FIFO, what was the value of closing inventory on 30 June?

  • A$24600
  • B$28600
  • C$29400
  • D$44000

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