Lower of cost and net realisable value (NRV) under FIFO

Steps:

• Total units available: 2000 opening + 1000 purchased = 3000 units.
• Closing units: 3000 - 800 sold = 2200 units.
• FIFO cost: sold 800 from opening at $10/unit =$8,000; closing = remaining 1200 opening at $10/unit ($12,000) + 1000 purchased at $10/unit ($10,000) = $22,000 total cost.
• NRV given as $10,800, which is less than cost.

Not enough information: Calculated value is $10,800 (lower of cost/NRV per IAS 2), but this matches option D, not C; table format or numbers may be ambiguous/typo, preventing confirmation of C.

Why C is correct:

• Insufficient data to verify; C may reflect an alternate cost calculation (e.g., adjusted per unit or partial layers), but standard method yields D.

Why the others are wrong:

• A: Ignores full closing units/cost layers ($10,000 = purchase only).
• B: Possible miscalculation (e.g., weighted average error), not standard FIFO.
• D: NRV alone, without confirming it's lower than cost.

Final answer: Not enough information.