Kip Started a Wholesale Store This Year Selling Bulk Peanut

question 71

Multiple Choice

Kip started a wholesale store this year selling bulk peanut butter. In January of this year, Kip purchased an initial five tubs of peanut butter for a total cost of $5,000. In July, Kip purchased three tubs for a total cost of $6,000. Finally, in November Kip bought two tubs for a total cost of $1,000. Kip sold six tubs by year-end. What is Kip's ending inventory under the FIFO cost-flow method?

• A)$12,000
• B)$6,000
• C)$5,000
• D)$2,500
• E)$1,000