Tag: FIFO Method

Accounting Multiple Choice Question – 6 October 2023

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

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The inventory records of a Alex Trading Ltd show the following information for product Z:

  • 1 January: opening balance – 100 units at a value of £3
  • 3 January: receipts into inventory – 50 units at a value of £4
  • 8 January: inventory issued – 120 units

What is the value of the inventory issued on 8 January using the First In First Out (FIFO) method?

Select ONE answer:

  1. £360
  2. £380
  3. £410
  4. £420

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 2

  1. Not correct
  2. Correct == > £100 * £3 + 20 * £4
  3. Not correct
  4. Not correct

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