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

Based on the table provided, the company used the FIFO method of inventory accounting. The cost of goods sold is calculated by using the cost of the earliest purchases first before moving on to later purchases. Thus, the ending inventory of $357 would represent the cost of the latest purchases.

A Company Sells a Climbing Kit and Uses the Periodic