Valuing opening inventory with Absorption Costing Profit Statement.

Hi,

I have seen through the lectures and the downloaded notes, that when a Profit Statement is produced when using absorption costing, the closing inventory is valued at the cost card’s full cost in calculating the figure for Cost of Sales.

If the factory had a cost card with a value of $25 full cost for the period ended, say 31st December, and went on to recalculate the cost card for a production run of the same item for the next quarter with a new full cost card value of say $30 per unit.

If there were closing inventory in the last period (31st December) of say 500 units at £25 = £12,500.

And these 500 units would become opening inventory for the new cost card period – 1st January onwards, would these opening units be valued at £25 per unit (the old cost card) or £30 per unit (the new cost card) for the purposes of calculating Cost of Sales at say 31 January?