The lubricant distributor Hydrovane tracks its drums of industrial oil on a FIFO basis. It held 400 units drums at 30 each at the start of 20X1, received 600 units at 33 in March and then 500 units at 36 in September, and sold 1,200 units over the year. What is the cost of the drums sold and that of the drums remaining in inventory at the reporting date?
- Drums in inventory at the start of the year
- 400
- Opening unit cost
- 30
- Drums received in March
- 600
- March unit cost
- 33
- Drums received in September
- 500
- September unit cost
- 36
- Drums sold during the year
- 1,200