The correct answer is A. Rs. 765.
The LIFO method (Last In, First Out) is a method of accounting for inventory. It assumes that the items that were purchased last are the first ones sold. This means that the cost of goods sold is based on the most recent purchases, and the ending inventory is based on the oldest purchases.
To calculate the value of closing stock using the LIFO 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 180 units, and the cost per unit is calculated as follows:
Cost per unit = (Cost of purchases in the period) / (Number of units purchased in the period)
= (100 units @ Rs. 5 + 200 units @ Rs. 4.50) / (100 + 200)
= Rs. 4.75
Therefore, the cost of goods sold is 180 units x Rs. 4.75 = Rs. 855.
The value of closing stock is then calculated as follows:
Value of closing stock = Opening inventory + Purchases – Cost of goods sold
= 50 units x Rs. 4 + 100 units x Rs. 5 + 200 units x Rs. 4.50 – Rs. 855
= Rs. 765.
The other options are incorrect because they do not take into account the LIFO method.