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JAMB Principles of Accounts 2005 Question 20

Question 20

Stock Valuation

Use the information below to answer questions 19 and 20.
Date | Particulars | Quantity (Units) | Unit Price (₦)
Jan. | Received | 100 | 2.00
Feb. | Received | 110 | 2.50
March | Issued | 80 |
April | Received | 200 | 3.00
May | Issued | 100 |
Calculate the closing stock under FIFO method.

  1. A.₦875
  2. B.₦675
  3. C.₦600
  4. D.₦300
Show the answer and explanation

Answer: B (₦675)

Explanation

The 180 units issued use the 100 from Jan and 80 from Feb, leaving 30 @ 2.50 and 200 @ 3: 75 + 600 = ₦675.