Identical units are purchased on the following three dates and at the respective costs: June 1 at $10 June 2 at $15

Identical units are purchased on the following three dates and at the respective costs:
June 1 at $10
June 2 at $15
July4 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.

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


Which statement(s) below correctly descrlbe(s) the relationship of cost of goods sold and ending
Inventory?

Cost of goods sold plus ending Inventory will equal total goods available for sale
Cost of goods available for sale must be allocated between cost of goods sold and ending
Inventory.
Cost of goods sold plus goods available for sale will equal total goods In ending Inventory.
Cost of goods sold will equal total ending Inventory.