alleryStart learning →Two lots arrive: 50 units at Rs 20 and later 50 at Rs 24. Issuing 60 units on a first-in first-out basis costs how much?
ARs 1,320
BRs 1,240
CRs 1,400
DRs 1,200
Answer & Solution
Correct answer: B. Rs 1,240
FIFO charges 50 units at Rs 20 and 10 at Rs 24, which is 1,000 plus 240 equal to Rs 1,240.
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?