Leo's Breads purchases high quality frozen Italian bread, which it then bakes and packages and sells to neighborhood restaurants. Leo's business activities for the first week of January were as follows:

1/1	Beginning Inventory	40 loaves	@ $1.00/loaf
1/2	Purchased	20 loaves	@ $1.20/loaf
1/3	Sell	30 loaves
1/4	Purchase	10 loaves	@ $1.30/loaf
1/5	Sell	15 loaves
1/6	Purchase	10 loaves	@ $1.40/loaf

Leo's uses a perpetual inventory system. It sells all of its bread for $4.00/loaf Which one of the following is correct (true) for the week? 1. Assuming that Leo's uses the LIFO cost flow method to value its inventory, calculate the amount which should be reported as ending inventory on 1/7 [i.e. at the end of the week].

A. $30

B. $39

C. $49

D. $14