### Cambrige AS and A Level Accounting Notes (9706)/ ZIMSECĀ  Advanced Accounting Level Notes: Inventory valuation: Inventory valuation methods: Last In First Out (LIFO): Example Question

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#### Mary Moyo

Mary Moyo operates a Sole Trader business trading as M M Toys where she buys and sells only one type of toy. On 1 January 20×7, MM Toys had opening inventory of 50 teddy bears at a purchase price of \$30 each.

• Her transactions for the first three months of 20×7 were:
 Date Purchases(units) Purchase Price per unit (\$) Sales (units) Jan 8 30 Jan 10 100 30.00 Jan 12 80 Jan 21 120 30.50 Jan 28 90 Feb 1 50 Feb 14 150 31.00 Feb 23 100 Mar 1 30 Mar 4 120 31.50 Mar 19 120 Mar 23 100 32.00 Mar 27 120
• No other transactions took place during the year
• Each toy was sold for \$50

Required:

1. Calculate the value of the inventory at 31 March 20X7 using the LIFO method of valuation

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