JAMB Accounts Principles of Accounts 2013 Paper

Concept:Vegetables are perishable, so stock valuation should allow the oldest items to be sold first. FIFO suits this practice.Explanation:FIFO means First-In, First-Out.The seller assumes that the first goods bought or received are the first goods sold.For a vegetable seller, this prevents spoilage by clearing older stock before it goes bad.This makes FIFO the most suitable valuation method for perishable products.Answer:B. FIFO