Compute the cost of goods sold for the current year based on the FIFO (first-in, first-out)method of inventory valuation.

A.$12,500

B.$29,175

C.$10,975

D.$27,650

E.None of the above

The purchases of a particular product for Andromeda Inc. during the year are shown: Jan. 1 Feb. 7 July 10 Nov. 25 Beginning inventory Purchase Purchase Purchase Total 1,100 units @ $7.25 1,450 units @ $7.50 1,600 units @ $8.00 1,000 units @ $8.50 5,150 $ 7,975 10,875 12,800 8,500 $ 40,150 At December 31 the ending inventory consisted of 1,500 units