Answer:
The correct answer is a.first-in, first-out.
Explanation:
When merchandise sold is assumed to be in the order in which the purchases were made, the company is using first-in, first-out. For example a company purchases on 1 jan 50 chairs at the rate $ 100 each and on 10 jan it purchases 30 chair at the rate of $ 120 each. On 15 jan it sold 30 chair so the cost it will charge in COGS = (100*30) $ 3000 under FIFO method.
