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The problem is asking to use the FIFO (First-In, First-Out) method to calculate the value of inventory on hand as of March 31.

**Steps to solve using FIFO:**

1. **March 1, 2022:** Purchase 600 units at ₹5 per unit.  
   Total cost = 600 × 5 = ₹3,000.

2. **March 5, 2022:** Purchase 200 units at ₹5.10 per unit.  
   Total cost = 200 × 5.10 = ₹1,020.

3. **March 9, 2022:** Issue 500 units.
   - According to FIFO, the first 500 units come from the March 1 purchase (600 units).
   - Cost for 500 units = 500 × 5 = ₹2,500.
   - Remaining units from March 1 purchase = 100 units (600 - 500 = 100).

4. **March 11, 2022:** Purchase 100 units at ₹4.5 per unit.  
   Total cost = 100 × 4.5 = ₹450.

5. **March 16, 2022:** Purchase 300 units at ₹5.5 per unit.  
   Total cost = 300 × 5.5 = ₹1,650.

6. **March 20, 2022:** Issue 250 units.
   - FIFO means we use the earliest available units:
     - First 100 units from the remaining March 1 purchase at ₹5 per unit = 100 × 5 = ₹500.
     - Next, 150 units from the March 5 purchase at ₹5.10 per unit = 150 × 5.10 = ₹765.
   - Remaining inventory from March 5 purchase = 50 units (200 - 150 = 50).

7. **March 29, 2022:** Issue 300 units.
   - First, 50 units from March 5 purchase at ₹5.10 = 50 × 5.10 = ₹255.
   - Next, 100 units from March 11 purchase at ₹4.5 = 100 × 4.5 = ₹450.
   - Finally, 150 units from March 16 purchase at ₹5.5 = 150 × 5.5 = ₹825.

**Remaining inventory after March 29:**
- 150 units from March 16 purchase at ₹5.5 per unit.

**Total value of inventory on hand on March 31:**
- 150 units × ₹5.5 = ₹825.

Let me know if you'd like further details or have any questions! 

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### Follow-up questions:
1. What are the advantages of using the FIFO method for inventory valuation?
2. How would the value of inventory differ using the LIFO (Last-In, First-Out) method?
3. What other inventory valuation methods are commonly used in accounting?
4. How would inflation affect inventory valuation using FIFO?
5. How does the FIFO method impact the financial statements of a company?

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**Tip:** FIFO tends to result in higher inventory values during periods of inflation, as older (lower-cost) items are sold first.

Use the FIFO method to calculate the value of inventory on hand on March 31.

Learn how to calculate the value of inventory using the FIFO method with detailed steps. This example covers multiple purchases and issues across March, illustrating how the First-In, First-Out principle applies to inventory management.

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