Accounting 9706 · AS & A Level · Traditional costing methods

Traditional costing methods — practice question

A business applies the first in first out (FIFO) inventory system. The information below is given. 1 March: Opening inventory, 1200 units at $10.00 12 March: Purchases, 2000 units at $10.20 22 March: Sales, 3000 units at $15.00 26 March: Purchases, 800 units at $10.50 The inventory held on 31 March could be sold for $10800. What is the value of inventory that should be shown in the statement of financial position at 31 March?

  • A$10000
  • B$10425
  • C$10440
  • D$10800

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