Purchases: Dec 4: 900 units at ₹50; Dec 10: 400 at ₹55; Dec 11: 300 at ₹55; Dec 19: 200 at ₹60; Dec 28: 800 at ₹47. Issues till Dec 18: 1,600 units. Closing inventory by FIFO:
A₹47,000 final value
B₹49,600 final value
C₹50,000 final value
D₹52,400 final value
Answer & Solution
Correct answer: B. ₹49,600 final value
1. Total purchases = 2,600 units; issues = 1,600; closing = 1,000 units.
2. Under FIFO, closing comprises latest purchases: 800 @ ₹47 + 200 @ ₹60.
3. Value = 800×47 + 200×60 = 37,600 + 12,000 = ₹49,600.
_Source: ICAI BoS Foundation Paper 1, Ch 4 "Inventories", Illustration 2_
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