JAMB Accounts Principles of Accounts 2014 Paper

Concept:FIFO assumes goods purchased first are sold first.Explanation:Sales = 300 books.Under FIFO, these 300 books come from the first purchase of 2/3: 900 books at $\#1,000$ each.Cost of goods sold = $300 \times \#1,000 = \#300,000$.The selling price of $\#900$ is not used for cost of goods sold.Answer:B. $\#300,000$