Question

1.

Answer 1

According to the FIFO method, the earliest sweaters are the ones that are sold off first, so if we have 24 remaining, 15 were bought in September (at $45 each) and the last 9 were from June (at $38 each). Then we calculate the total value by:
15($45) + 9($38) = $1,017
The value of the inventory is $1,017.