Reference no: EM132779073

A firm has the following transactions with its product R.

1 January 20X1 Opening inventory:

1 February 20X1 Buys 10 units at $300 per unit 1

1 February 20X1 Buys

12 units at $250 per unit

1 April 20X1 Sells 8 units at $400 per unit

1 August 20X1 Buys 6 units at $200 per unit

1 December 20X1 Sells 12 units at $400 per unit

The firm uses FIFO to value its inventory.

Problem 1: What is the inventory value at the end of the year?

Option 1: $nil

Option 2: $1,700

Option 3: $2,400

Option 4: $2,007.20