A Business Has Opening Inventory of 200 Units Which Cost

Multiple Choice

A business has opening inventory of 200 units which cost £5.00 per unit and during the year it bought an additional 300 units at £6.00 and 400 units at £7.00. It sold 800 units during the same period. What is the cost of the closing inventory using the first in first out method of valuation?

A) £500
B) £600
C) £700
D) £623
E) None of the above