Accounting 9706 · AS & A Level · Traditional costing methods

Traditional costing methods — practice question

Trading began for a business on 1 January. Its inventory purchases and sales during January were: 4 January: bought 3 at $200 each 13 January: sold 2 at $400 each 26 January: bought 3 at $250 each 28 January: sold 2 at $400 each Inventory was valued using the first in first out (FIFO) method. Calculate the gross profit for January.

  • A$250
  • B$650
  • C$700
  • D$750

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