A company purchased 200 units for $30 each on January 31. It purchased 220 units for $33 each on February 28. It sold a total of 350 units for $45 each from March 1 through December 31. What is the cost of ending inventory on December 31 if the company uses the first-in, first-out (FIFO) inventory costing method? (Assume that the company uses a perpetual inventory system.)
A) $2,310
B) $300
C) $2,100
D) $1,800
A) $2,310
Explanation: A) Ending merchandise inventory = (200 + 220 - 350) × $33 = 70 units x $33 = $2,310
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