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Answer:
b) $3,200.
Explanation:
LIFO assumes that the units to arrive last will be sold first. This means that valuation of inventory is based on prices of earlier units purchased.
Calculation
Ending Inventory = 10 x $120 + 16 x $125
= $3,200
Therefore,
Using the LIFO inventory valuation method, the cost of the ending inventory is $3,200.