alleryStart learning →Lots: 100 units at Rs 10, 200 at Rs 12, 100 at Rs 14. Under first-in first-out, a 250 unit issue costs?
ARs 3,200
BRs 2,800
CRs 3,000
DRs 2,500
Answer & Solution
Correct answer: B. Rs 2,800
FIFO takes 100 units at Rs 10 and 150 at Rs 12, which is 1,000 plus 1,800 equal to Rs 2,800.
Keep practising Inventory Valuation
Browse all Inventory Valuation questions for CA Inter, or explore more Cost and Management Accounting topics.
Related questions
The ABC concept is based on whose law?An item needs 500 units a year at Rs 40 each. What is its annual usage value?After computing usage values, items are arranged in which order?In ABC analysis, how is an item's annual usage value computed?ABC class thresholds are what?Class B holds 30% of items. About what share of annual consumption value does it hold?Half of all items fall in class C. Roughly what share of consumption value do they hold?ABC analysis resembles which principle, where few items carry most value?