Assuming that Ace Systems uses the FIFO flow assump?tion, the 12 units of this product in inventory at January 31 have a total cost of:
A) $341
B) $509.
C) $499.
D) Some other amount.

Question

Quizplus · Accepted Answer

The FIFO flow assumption means that the first units purchased are the first units sold. Therefore, the 12 units of this product in inventory at January 31 are the 12 units that were purchased on January 10 at a cost of $28.42 per unit. The total cost of these 12 units is therefore $341 (12 x $28.42).

Assuming That Ace Systems Uses the FIFO Flow Assump?tion, the 12