The value of the residual inventory of the item at the end of the year X will be :

Data regarding inventory of a particular item of usage in the production activities of an organization are: the quantity in stock is 1500 units and the value of this stock is Rs.1,27,500. (This works out to an average unit cost of Rs.85.) During the ensuing year X, and additional 300 units are purchased at a unit cost of Rs.95. Consumption in production processes during the year X has been 600 units. Working by the First-In-First Out basis, the value of the residual inventory of the item at the end of the year X will be
(a) Rs.1,00,000
(b) Rs.1,02,500
(c) Rs.1,05,000
(d) Rs.1,07,500

Anurag Mishra Professor Asked on 12th January 2016 in Maths.
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    Answer: (c) Rs. 1, 05, 5000

    Anurag Mishra Professor Answered on 12th January 2016.
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