Answer:
correct option is d.$800
Explanation:
given data
Sept. 1 Inventory = 20 units at $20
Sept. 4 Sale = 10 units
Sept. 10 Purchase = 30 units at $25
Sept. 17 Sale = 20 units
Sept. 30 Purchase = 10 units at $30
to find out
uses FIFO, the cost of the ending merchandise inventory
solution
we use here FIFO
Date Particulars Workings Amount
Sep 1 Opening inventory 20 units × $20 $400
Sep 4 Sales 10 units * $20 $200
Sep 10 Purchase 30 units * $25 $750
Sep 17 Sales (10 units * $20) + (10 units * $25) $450
Sep 30 Purchase 10 Units * $30 $300
Closing inventory as per FIFO $800
so correct option is d.$800
