Question
A business has the following inventory transactions:
• Opening Stock: 100 units @ ₹10 • Purchases: 200 units @ ₹12 • Sales: 250 units Using FIFO, what is the closing inventory value?Solution
FIFO – Oldest stock sold first 250 units sold → 100 (from ₹10) + 150 (from ₹12) → Remaining = 50 units @ ₹12 = ₹600
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