A-LevelAccountingPreparation of financial statements9706/12 · Oct/Nov 2011 · Q161 Mark
A trader buys and sells garden fertiliser in 50 kilo units. Inventory at 1 July was 250 units valued at 16 per unit. Purchases and sales during the month were as follows. date purchases (units) sales (units) 3 July sales 100 11 July purchases (13 per unit) 200 14 July sales 200 25 July purchases ($14 per unit) 200 29 July sales 200 The FIFO method is used to value inventory. What is the value of the closing inventory at 31 July?
A$1950
B$2100
C$2400
D$4000
✓ Correct answer
B: $2100
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