Diaz Manufacturing Bought Raw Materials on April 23, 2013 and Also

Multiple Choice

Diaz Manufacturing bought raw materials on April 23, 2013 and also on July 2, 2013. Products produced in the months of May were sold in July. The company uses FIFO to value its inventory. According to the matching principle, the company's accountant should associate:

A) the inventory acquired on July 2 with the products sold.
B) the inventory acquired on April 23 with the products sold.
C) Neither of these dates is valid because the products were sold in July.
D) None of the above.