Question

Consider the following facts:

– Company A had 500 units of inventory on hand at the beginning ofthe year.

– The unit cost of the beginning inventory items was $18each.

– On January 14, it sold 375 units for $28 each.

– On January 17, it purchased 250 units for $20 each.

– On January 25, it purchased 250 units for $22 each.

– On January 29, it sold 260 units for $32 each.

– Company A does not use the perpetual inventory accountingmethod.

– At the end of January, Company A takes a physical inventory countand discovers that 365 units are on hand.

Company A's cost of inventory at the end of January is $_________under the FIFO accounting method.

a. $6,570

b. $7,300

c. $8,030

d. $7,800

e. None of these answers are correct.