Answer:
c. $690
Explanation:
In FIFO method, A company can sell those products which it has purchased earlier.
Beginning Inventory = 10 units x $30 = $ 300
First Purchase = 25 units x $32 = $ 800
Second purchase = 30 units x $34 =$1,020
Third purchase = 10 units x $35 =$ 350
Total costs (75 units) = $2,470
As the firm uses FIFO inventory method, it has 20 inventory in hands,
Therefore, 10 units from the last purchase (third) and 10 units from second purchase will be remained unsold.
Hence, Ending inventory cost =
Second purchase 10 units x $34 = $340
Third purchase 10 units x $35 = $350
Total ending inventory cost = $690
