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rodikova
27 days ago
13

The following inventory was available for sale during the year for Dolphin Tools: Beginning inventory 10 units at $120 First pur

chase 15 units at $165 Second purchase 30 units at $210 Third purchase 20 units at $195 Dolphin Tools has 25 units on hand at the end of the year. What is the dollar amount of inventory at the end of the year according to the first-in, first-out method?a. $6,600.b. $11,900.c. $6,300.d. $7,800.
Business
1 answer:
Free_Kalibri [3.1K]27 days ago
8 0

Response: $4,950

Justification:

Using the First In First Out method for valuing inventory indicates that the oldest inventory is sold off first, leaving the newer stock at year's end.

The final 25 units consist of the latest purchases made:

20 units from the third order

5 units from the second order

Thus, inventory valuation = (20 * 195) + (5 * 210)

= $4,950

This question does not involve the provided options.

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