Accounting Multiple Choice Question – 2 February 2022

The following information relates to the inventory of a business.

Estimated unit selling price at 30 June is £20.

There was no opening inventory.

What was the value of closing inventory at 31 January using FIFO?

Select ONE answer:

1. £24 600
2. £28 600
3. £29 400
4. £44 000

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

1. Not correct
2. Not correct
3. Correct ==> (1,000 * £12) + (1,000 * £13) + (1,000 * £14) – (800 * £12)
4. Not correct

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