Answer:
D. $2.30
Step-by-step explanation:
To put it simply, if it is First-In First-Out (FIFO) method, meaning, whatever comes first, it would be sold first. FIFO method have to start by determining the cost of the oldest inventory.
So logically speaking, if:
June 4 = 70 units × $2.00 = $140
June 11 = 30 units × $3.00 = $90
Total cost for the first 100 units = $140 + $90 = $230
Since the units sold in June is 100 units, therefore:
Cost of Goods Sold = Total cost / Total units
= $230 / 100 units
= $2.30 per unit
Hope it helps. Thanks!