16.5 Porter Farrington Limited imports components for input into its production process. In May 20X4 the following deliveries into stock and transfers to production take place in respect of component PR430;

Date Activity Units 1 May Balance of stock @ £3.00 per unit 30 2 May Delivery of stock @ £3.30 per unit 50 18 May Transfer to production (40)

31 May Balance of stock 40 What is the value of closing stock, assuming that Porter Farrington Limited adopts the FIFO convention?

a) £123

b) £126

c) £120

d) £132.