At the beginning of June there were 500 Widgets held in the stores. 200 of these Widgets had been purchased for £12.50 each in May and 300 had been purchased for £13 each in April. On 15th June a further 150 Widgets were received into stores at a purchase cost of £13.20 each. The only issue of Widgets in June occurred on the 25th, when 90 units were issued to production. Using the FIFO valuation method, what was the value of the opening inventory of Widgets on 1st July? a) £1,070 b) £1,188 c) £7,192 d) £7,210
At the beginning of June there were 500 Widgets held in the stores. 200 of these Widgets had been purchased for £12.50 each in May and 300 had been purchased for £13 each in April. On 15th June a further 150 Widgets were received into stores at a purchase cost of £13.20 each. The only issue of Widgets in June occurred on the 25th, when 90 units were issued to production. Using the FIFO valuation method, what was the value of the opening inventory of Widgets on 1st July? a) £1,070 b) £1,188 c) £7,192 d) £7,210
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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At the beginning of June there were 500 Widgets held in the stores. 200 of these Widgets had been purchased for £12.50 each in May and 300 had been purchased for £13 each in April.
On 15th June a further 150 Widgets were received into stores at a purchase cost of £13.20 each.
The only issue of Widgets in June occurred on the 25th, when 90 units were issued to production.
Using the FIFO valuation method, what was the value of the opening inventory of Widgets on 1st July?
a) £1,070
b) £1,188
c) £7,192
d) £7,210
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