Answer: Cost of closing inventory =$25,000
Explanation:
Using the FIFO which is the First In First Out method, The inventorY purchased first be sold first with the the ending inventory consisting of the most recent purchases.
Given nthta ending inventory is 400 units, we start fro the most recent purchase
12/15 purchase of 100 units at $80 each=$8,000
6/15 purchase of 200 units at $60 each=$12,000
we are left with 100 units so
2/28 Purchase 100 units at $50 each =$5000
Cost of closing inventory =$8,000+$12,000+$5000= $25,000
Therefore cost of 400 units using the FIFO Method is $25,000.
