A business uses the First In First Out (FIFO) method to value its inventory.
The following inventory transactions took place during a month. There was no opening balance.

| date | receipts units | $ per unit | issues units |
|:---|:---|:---|:---|
| 1 July | 100 | 15.50 | |
| 6 July | 100 | 15.60 | |
| 10 July | | | 80 |
| 20 July | 50 | 15.80 | |
| 25 July | | | 100 |

What was the value of inventory at the end of the month?

Q: What topic does this question test?

This question tests Inventory Valuation in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

Q: Which exam paper is this question from?

This question appeared in the Cambridge A-Level Accounting May/June 2019 examination, Paper 1 Variant 2 (9706_s19_qp_12.pdf).

Question

A business uses the First In First Out (FIFO) method to value its inventory.
The following inventory transactions took place during a month. There was no opening balance.

| date | receipts units | $ per unit | issues units |
|:---|:---|:---|:---|
| 1 July | 100 | 15.50 | |
| 6 July | 100 | 15.60 | |
| 10 July | | | 80 |
| 20 July | 50 | 15.80 | |
| 25 July | | | 100 |

What was the value of inventory at the end of the month?

Oracle Prep · Accepted Answer

The correct answer is C: $1102.

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