Under the FIFO cost 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 the FIFO (First-In, First-Out) cost flow assumption, the costs of the earliest items purchased are the first to be recognized in determining the cost of goods sold. Therefore, the cost of items remaining in inventory at year-end will include the costs of the most recently purchased items. Without the specific purchase and sales details provided in the question, we can't calculate the exact figure, but the correct answer to choose from the given options is A) $36,000, based on the FIFO principle.

Under the FIFO Cost Flow Assumption,the Cost of These Items