Answer:
See explanation section.
Explanation:
We know, first in first out (FIFO) inventory system shows that items were sold those were purchase earlier.
Cost of good sold under FIFO method,
Jan. 1 Beginning inventory 50 units × $75 = $3,750
May. 5 Purchase 215 units × $78 = $16,770
<u>Nov. 3 Purchase 150 units × $83 = $12,450</u>
Cost of good sold 415 units = $32,970
Ending inventory = Total inventory - cost of good sold
Ending inventory = 430 units - 415 units = 15 units
Cost of inventory = Total cost - Cost of good sold
Cost of inventory = $34,215 - $32,970 = $1,245
