Under the FIFO flow assumption, the cost of these items to be included in inventory in the company's year-end balance sheet is:
A) $36,000.
B) $36,500.
C) $42,000.
D) $37,500.

Question

Quizplus · Accepted Answer

Under FIFO (First-In, First-Out), the oldest costs are assigned to the cost of goods sold, and the most recent costs are assigned to ending inventory. Therefore, the cost of the most recent purchases would be included in the inventory valuation.

Under the FIFO Flow Assumption, the Cost of These Items