One identical unit is purchased on each of the following three dates and at the respective costs: June 1 at $10 June 2 at $15 July 4 at $20 The company sells two units during the period. Conclude which inventory items are sold first and which unit remains in ending inventory if the company is using the FIFO cost flow assumption.

Multiple choice question.

The June 1 at $10 is sold; the June 2 at $15 and the July 4 at $20 remain in ending inventory.

The June 1 at $10 and the June 2 at $15 are both sold; the July 4 unit remains in ending inventory.

The June 2 at $15 and the July 4 at $20 are both sold; the June 1 at $10 remains in ending inventory.