FIFO Inventory Valuation Steps:

• January receipt: 100 units at $5 =$500 total inventory.
• February receipt: Add 200 units at $6; total = 100@$5 + 200@$6 =$1,700.
• February issue: 50 units from oldest (January) layer at $5; remaining = 50@$5 + 200@$6 =$1,450.
• March issue: 200 units from oldest layers (50@$5 + 150@$6); remaining = 50@$6 =$300. Why D is correct:
• FIFO issues oldest stock first, leaving newest 50 units from February at $6/unit for$300 value. Why the others are wrong:
• A $250: Assumes all remaining from January stock, violating FIFO.
• B $275: Likely from weighted average costing, not FIFO.
• C $285: Possible error mixing partial layers, like 50@$5 + 50@$6.

Final answer: D