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⦁ An organisation’s stock records show the following transactions for a specific item during last month: Date Receipts Issues units units 4th 50 13th 200 20th 50 27th 50 The stock at the beginning of last month consisted of 100 units valued at £6,700. The receipts last month cost £62 per unit. The value of the closing stock for last month has been calculated twice – once using a FIFO valuation and once using a LIFO valuation. Which of the following statements about the valuation of closing stock for last month is correct? A The FIFO valuation is higher than the LIFO valuation by £250. B The LIFO valuation is higher than the FIFO valuation by £250. C The FIFO valuation is higher than the LIFO valuation by £500. D The LIFO valuation is higher than the FIFO valuation by £500.
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