FIFO values ending inventory at recent purchase costs Steps:

• Record purchases: January adds 100 units at $5 ($500 total); February adds 200 units at $6 ($1,200 total). Total available: 300 units.
• Determine ending units: 50 units remain at end of March (implying 250 units sold).
• Apply FIFO: Sales deplete oldest layers first (all 100 from January, then 150 from February), leaving 50 units from February purchase.
• Calculate value: 50 units × $6 =$300.

Why D is correct:

• FIFO rule assigns latest acquisition costs to ending inventory, so remaining units use February's $6 rate for$300 total.

Why the others are wrong:

• A. $250 assumes 50 units at January's$5 (LIFO, not FIFO).
• B. $275usesapproximateave$5.50/unit), violating FIFO.

Final answer: D