Under LIFO, opening stock 100 units at ₹20, purchase 200 at ₹25, issue 250 units. Value of issue is:
A₹6,000
B₹6,500
C₹5,500
D₹5,000
Answer & Solution
Correct answer: A. ₹6,000
1. LIFO issues the latest receipts first.
2. First 200 units come from the latest purchase at ₹25 = ₹5,000.
3. The remaining 50 units come from opening stock at ₹20 = ₹1,000.
4. Total value of issue = 5,000 + 1,000 = ₹6,000.
_Source: ICAI BoS Inter Paper 3, Ch 2 "Material Cost", §2.7 Illus 13_
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