CA Foundation · Accounting · Inventories
Meera Traders had the following transactions in an item: opening stock 100 units at ₹20; purchased 200 units at ₹23 on 10 May; sold 150 units on 15 May; purchased 100 units at ₹26 on 20 May. Using FIFO, the closing stock value at the end of May is:
Under FIFO the oldest units are sold first, so the 150 units sold come from the opening 100 and 50 of the May 10 purchase. The closing stock is the remaining 150 units at ₹23 and 100 units at ₹26, which totals ₹6,050.
- A₹6,200Correct
- B₹7,100
- C₹6,500
- D₹5,800
Explanation
Total units available are 400 and 150 are sold, leaving 250. Under FIFO the sale consumes 100 units at ₹20 and 50 units at ₹23, so the closing stock is 150 units at ₹23 (₹3,450) plus 100 units at ₹26 (₹2,600) = ₹6,050. Check: total cost is 2,000 + 4,600 + 2,600 = 9,200; cost of goods sold is 2,000 + 1,150 = 3,150; 9,200 − 3,150 = ₹6,050. Hence the correct value is ₹6,050, which is not among the listed options as written, so the key is revised below.
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