Under the FIFO flow assumption, the cost of these items to be included in inventory in the company's year-end statement of financial position is:

Question

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FIFO (first-in, first-out) assumes that the first items purchased are the first items sold. Therefore, the cost of the items in inventory at the end of the year is the cost of the most recent purchases. In this case, the most recent purchases were made at a cost of $36,000.

Under the FIFO Flow Assumption, the Cost of These Items