Back to Questions
SSC Financial and Cost Accounting P-1 QUESTION #9615
Question 1
A business follows FIFO for stock valuation. Receipts: Jan 1 – 10 units @ Rs. 150; Jan 2 – 15 units @ Rs. 200. Issues: Jan 5 – 5 units; Jan 6 – 10 units. What is the total cost of goods issued (cost of sales)?
  • Rs. 2,500
  • Rs. 3,550✔️
  • Rs. 3,250
  • Rs. 2,750
Correct Answer Explanation
Under FIFO, oldest costs are issued first. Jan 5 issue: 5 units @ Rs. 150 = Rs. 750. Jan 6 issue: remaining 5 units @ Rs. 150 = Rs. 750 + 5 units @ Rs. 200 = Rs. 1,000; total Jan 6 = Rs. 1,750. Total cost of issues = 750 + 1,750 = Rs. 2,500.