A Company Purchased 500 Units for $30 Each on January

question 181

Multiple Choice

A company purchased 500 units for $30 each on January 31. It purchased 550 units for $33 each on February 28. It sold a total of 650 units for $45 each from March 1 through December 31. What is the cost of ending inventory on December 31 if the company uses the first-in, first-out (FIFO) inventory costing method? (Assume that the company uses a perpetual inventory system.)

• A) $13,200
• B) $10,200
• C) $12,000
• D) $1,800

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