JAMB Accounts Principles of Accounts 2012 Paper

Concept:FIFO assumes the earliest purchased goods are issued first, so remaining stock is valued using the latest purchase costs.Explanation:If 9 May is taken literally, no issue has occurred yet, so stock would be $160$ bags valued at #1,690, which is not among the options.The intended position is therefore immediately after the $15/5$ issue of $85$ bags.Before the issue: $100$ bags at #10 and $60$ bags at #11.50.Under FIFO, the $85$ bags issued come from the first batch: $85 \times \#10 = \#850$.Remaining stock: $15$ bags at #10 and $60$ bags at #11.50.Stock value $= (15 \times \#10) + (60 \times \#11.50) = \#150 + \#690 = \#840.00$.Answer:#840.00 (Option B)