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Question 1: GoodLife is a start-up retailer of high end YoYos. During their first fiscal year (just ended December 31, 2019), GoodLife made the following inventory purchases: 2/110,000 units, total cost- $10,000; 7/1 10,000 units -- $12,000, and 9/1 15,000 units, total costs $7,500. On December 31 GoodLife had 5000 units remaining in inventory. Under the FIFO method of inventory valuation,Goodlifes ending inventory balance is $_____. HINT: The beginning inventory at Goodlife is zero.
Group of answer choices
Option 1: $7,000
Option 2: $2,500
Option 3: $4,000
Option 4: Not enough data provided to determine the ending inventory amount
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