During the year ended 31 December 2016, Grasmere purchased the following items for resale:

Date

Number of items

Cost price per item

March

20

Ksh11

June

20

Ksh13

At 31 December 2016, 20 items remained unsold. At that date the resale price wasKsh12 an item and the purchase price of new supplies wasKsh10 an item. Grasmere determines cost of inventory under the first-in first-out method.

At what amount should finished goods inventory be shown in the statement of financial position as at 31 December 2016?

A.Ksh200

B.Ksh220

C.Ksh240

D.Ksh260