Basic. An organization's stock records show the following transactions for a specific item during last month:

The stock at the beginning of last month consisted of 100 units valued at £6700.
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.
ACCA Financial Information for Management

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Date Receipts units Issues units 4th 13th 200 20th 27th 50 550