Multiple choice

Consider the following transactions: Purchases: 5 April = 900 units @ Rs. 5                 10 April = 300 units @ Rs. 5.50                 12 April = 100 units @ Rs. 4 Issues: 8 April = 600 units and 11 April = 400 units. Find the value of issues on 11 April, as per LIFO method.

  1. Rs. 2,050

  2. Rs. 2,000

  3. Rs. 2,150

  4. Rs. 4,500
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Issue on 11 April i.e. 300 units from 10 April and 100 from 8 April = 300*5.50 + 100*5 = 2150 (A) 100*4 + 300*5.50 = 2050    (B) 400*5 = 2000 (D) 900*5 = 4500 are incorrect answers.

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