Inventory records for Dunbar Incorporated revealed the following:

Date Transaction Number of Units Unit Cost

Apr. 1 Beginning inventory 410 $2.33

Apr. 20 Purchase 380 2.74

Dunbar sold 640 units of inventory during the month. Ending inventory assuming FIFO would be (Do not round your intermediate calculations. Round your answer to the nearest dollar amount):

A. $349.

B. $955.

C. $411.

D. $1,123.

Answer: The correct answer is "C. $411.".

Explanation: The inventory before the sale is:

Date Transaction Number of Units Unit Cost Total Cost

Apr. 1 Beginning Inv. 410 $2,33 $955,30

Apr. 20 Purchase 380 $2,74 $1041,20

The sale according to the FIFO (First in - First out) system would be:

Transaction Number of Units Unit Cost Total Cost

Sales 410 $2,33 $955,30

230 $2,74 $630,20

Total: $1585,50

Ending inventory is:

Number of Units Unit Cost Total Cost

150 (380-230) $2,74 $411