A company sells a climbing kit and uses the periodic inventory system to account for its merchandise.The beginning balance of the inventory and its transactions during January were as follows: If the ending inventory is reported at $357,what inventory method was used?
A)LIFO
B)FIFO
C)Weighted average
D)Specific identification
E)Retail inventory method

Question

A company sells a climbing kit and uses the periodic inventory system to account for its merchandise.The beginning balance of the inventory and its transactions during January were as follows:  If the ending inventory is reported at $357,what inventory method was used?
A)LIFO 
B)FIFO 
C)Weighted average 
D)Specific identification 
E)Retail inventory method

Quizplus · Accepted Answer

The FIFO method assumes that the first units purchased are the first units sold, and the last units purchased are the ones left in inventory. Given the beginning balance and the transactions, the units that were purchased on January 31st are the same as the units that were sold on January 31st, which means FIFO would result in the same ending inventory value of $357.

A Company Sells a Climbing Kit and Uses the Periodic