Which of the following is true of the FIFO inventory method?

a-	It assumes that the cost of the earliest units purchased are the first to be allocated to cost of goods sold.

b- It assumes that the cost of the earliest units purchased are the last to be allocated to the beginning inventory.

c- It assumes that the cost of the earliest units purchased are the first to be allocated to the ending inventory.

d- It assumes that the cost of the earliest units purchased are the last to be allocated to cost of goods sold.