Answer-A business follows the FIFO method of inventory management and undertook the following inventory tra...

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Explanation      FIFO  First In First Out i.e. o ldest stock is sold first     As such, for selling the 250 0 units , 100 0 units from opening stock at 10 0 each are used followed by additional 150 0 units from the purchases of 2000 units made during the year at 12 0 each.      Thus, the remaining inventory from the purchases stands at 2000 units purchased  1500 units sold  500 units of 12 0 each.       Closing inventory  50 0 units  12 0  60 , 0 0 0

A business follows the FIFO method of inventory

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