1)Different FIFO inventory assumptions:

Beginning inventory of 10 units @ $5 = $50 Purchases month #1 of 10 units @ $15= $150 Purchases month #2 of 10 units @ $10 = $100 Cost of goods available for sale (subtotal) = $300 Less ending inventory of 10 units Equals cost of goods sold (also known as cost of sales) Cost of goods sold or cost of sales = $200

Sales equal $500 and operating expenses equal $50.

What is the earnings before tax (EBT) amount?

	A.	$350
	B.	$300
	C.	$250
	---- .	D. None of these is correct.