A Firm Purchased 25 Units of Materials with a Unit

question 53

Multiple Choice

A firm purchased 25 units of materials with a unit price of $2.00 on May 5. On May 15, the firm purchased 25 units with a unit price of $2.10. If the firm uses the FIFO method of inventory pricing, the total cost of 30 units issued on May 20 would be

• A) $62.50.
• B) $60.00.
• C) $63.00.
• D) $60.50. (25 x 2) + (5 x 2.10) = 60.50.

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