Answer:
lLIFO-option B is correct ,$750
FIFO-option A is correct,$800
Explanation:
In using LIFO, each item sold is from the last inventory received while the FIFO is of the opinion that item sold is the oldest stock of inventory.
Under LIFO, cost of ending merchandise is as follows:
10 units (20-10) at $20=$200
10 units (30-20) at $25=$250
10 units at $30 =$300
Total value of inventory =$750
The correct option is B,$750
Under FIFO, cost of ending inventory is as follows:
20 units at $25 =$500
10 units at $30 = $300
total value of inventory =$800
The correct option is A,$800
