The correct answer is A. Rs. 765.
FIFO stands for First In, First Out. It is a method of accounting for inventory that assumes that the first goods that are purchased are also the first goods that are sold. This means that the cost of goods sold is based on the cost of the oldest inventory items.
To calculate the value of closing stock using the FIFO method, we need to calculate the cost of goods sold first. The cost of goods sold is calculated by multiplying the number of units sold by the cost per unit.
The number of units sold is 150 units. The cost per unit is calculated by dividing the total cost of purchases by the total number of units purchased. The total cost of purchases is Rs. 1,200, which is the sum of the cost of the opening balance, the receipts, and the issues. The total number of units purchased is 350 units. Therefore, the cost per unit is Rs. 3.42857.
The cost of goods sold is therefore Rs. 514.37. The value of closing stock is the difference between the cost of goods sold and the opening balance. The opening balance is Rs. 200. Therefore, the value of closing stock is Rs. 765.
The other options are incorrect because they do not take into account the cost of the opening balance.