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    Question

    A company has the following inventory data for a

    product: •Opening Stock: 500 units @ ₹50 •Purchases: 1,000 units @ ₹55 •Sales: 1,200 units Closing stock is valued using FIFO. What is the value of closing inventory?
    A ₹15,000 Correct Answer Incorrect Answer
    B ₹16,500 Correct Answer Incorrect Answer
    C ₹5,000 Correct Answer Incorrect Answer
    D ₹17,500 Correct Answer Incorrect Answer

    Solution

    Explanation: Using FIFO: •1,200 units sold = 500 @ ₹50 + 700 @ ₹55 = ₹25,000 + ₹38,500 = ₹63,500 •Remaining 300 units = from last purchase @ ₹55 = ₹16,500 So Closing stock = 300 x ₹55 = ₹16,500.

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