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Gupta Enterprises had opening stock of 200 units at ₹50 per unit. It purchased 300 units at ₹60 per unit on 10 June and sold 350 units on 20 June. Using FIFO, the value of closing stock on 30 June is:
Closing stock is ₹9,000. Of 500 units available, 350 are sold, leaving 150 units. FIFO treats the oldest units as sold first, so the 200 units at ₹50 go first and then 150 of the ₹60 units. The remaining 150 units at ₹60 give ₹9,000.
- A₹7,500Correct
- B₹8,000
- C₹9,000
- D₹8,500
Explanation
Total units available = 500, sold 350, so closing stock = 150 units. Under FIFO the oldest 200 units (₹50) are sold first, then 150 units of the ₹60 lot. Remaining 150 units are at ₹60 = ₹9,000. Check: total cost 10,000+18,000 = 28,000; cost of goods sold = 10,000+9,000 = 19,000; closing = 9,000. So the correct value is ₹9,000, and option 3 is that figure.
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