FIFO valuation of materials issued to production Steps:

• Calculate quantity issued: 1,000 kg + 20,000 kg - 2,000 kg = 19,000 kg.
• Under FIFO, issue oldest stock first: 1,000 kg from opening at $20/kg =$20,000.
• Next, 18,000 kg from purchases at $22/kg =$396,000.
• Total cost issued: $20,000 +$396,000 = $416,000.

The provided options do not include $416,000, making the choice ambiguous.

Why C is correct:

• Not applicable; calculation yields $416,000, not matching any option.

Why the others are wrong:

• A: Too low; ignores main purchases.
• B: Understates by excluding full opening and part of purchases.
• D: Understates by using incorrect quantity at $22/kg (e.g., 17,500 kg).

Not enough information. Final answer: Not enough information.