passwella.
Menu

JAMB Principles of Accounts 2017 Question 29

Question 29

Stock Valuation

Use the information below to answer questions 29 and 30.
Jan. 1 Received 1,000 units at ₦10 each
Jan. 2 Received 2,000 units at ₦12 each
Jan. 3 Issued 1,500 units
Jan. 4 Received 1,000 units at ₦11 each
Jan. 5 Issued 1000 units

Using FIFO method, what is the value of the closing stock?

  1. A.₦17,000
  2. B.₦29,000
  3. C.₦34,000
  4. D.₦12,000
Show the answer and explanation

Answer: A (₦17,000)

Explanation

FIFO issues the oldest units first. After both issues, 500 units at ₦12 and 1,000 units at ₦11 remain: 6,000 + 11,000 = ₦17,000.