Question

Opening stock 400 units @ Rs.20 each. Purchases during the year 200 units @ Rs.25each. Issues – 250 units In LIFOMethod, closing stock will be?a) 8750
b) 7000c) 7750
d) 8000

Answer 1

Opening stock 400*20

Purchase 200*25

LIFO= last in first out

Therefore issue of 250 from

Purchase all 200 and remaining 50 from opening stock

Stock=350*20

7000