FIFO method for inventory valuation Steps:

• Calculate total units available: 700 (April) + 500 (May) = 1,200 units.
• Subtract units sold: 1,200 - 400 = 800 units remaining.
• Determine cost of goods sold under FIFO: 400 units from earliest purchase (April at $10 each) =$4,000.
• Calculate closing inventory value: total cost $17,000 ($7,000 + $10,000) -$4,000 = $13,000. Not enough information: Calculated value ($13,000) does not match any choices, possibly missing beginning inventory or other transactions. Why C is correct:
• Not applicable; no option matches FIFO calculation. Why the others are wrong:
• A: Does not match FIFO ending cost.
• B: Does not match FIFO ending cost.
• D: Equals total purchases before sales, ignoring outflow.

Final answer: Not enough information.