A firm purchased 50 units of materials with a unit price of $1.30 on June 1.On June 15,the firm purchased 50 units with a unit price of $1.20.If the firm uses the FIFO method of inventory pricing,the total cost of 65 units issued on June 20 would be

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Quizplus · Accepted Answer

Under FIFO (First-In, First-Out), the first 50 units are priced at $1.30 each, and the next 15 units are priced at $1.20 each. The total cost is (50 x $1.30) + (15 x $1.20) = $65 + $18 = $83.00.

A Firm Purchased 50 Units of Materials with a Unit