A company purchased 300 units for $30 each on January 31. It

A company purchased 300 units for $30 each on January 31. It purchased 360 units for $36 each on February 28. It sold a total of 460 units for $40 each from March 1 through December 31

What is the amount of ending inventory on December 31 if the company uses the first-in, first-out (FIFO) inventory costing method? (Assume that the company uses a perpetual inventory system.)
A) $7,200
B) $5,360
C) $6,000
D) $640

ANSWER

A .Ending merchandise inventory = (300 + 360 — 460 ) × $36 =