1. **Problem Statement:** We need to value the closing inventory using the FIFO (First In, First Out) method. 2. **Given Data:** - Opening inventory: 10 units at 2 each - Purchases: 30 units at 3 each - Issues: 12 units, then 8 units 3. **FIFO Method Explanation:** FIFO assumes that the oldest inventory items are issued first. 4. **Calculate total units:** Opening inventory + Purchases = 10 + 30 = 40 units 5. **Calculate total issues:** 12 + 8 = 20 units issued 6. **Calculate closing inventory units:** 40 - 20 = 20 units remain 7. **Determine which units remain:** - First, 10 units from opening inventory were issued first. - Then, 10 units from purchases were issued (since total issued is 20). - Remaining units are 20 units from purchases at 3 each. 8. **Value closing inventory:** $$20 \times 3 = 60$$ **Final answer:** Closing inventory is valued at 60.