Kingman Company had 500 units of "Dink" in its inventory at a cost of $5 each.It purchased, for $2,400, 300 more units of "Dink".Kingman then sold 600 units at a selling price of $10 each, resulting in a gross profit of $2,100.The cost flow assumption used by Kingman
A)is FIFO.
B)is LIFO.
C)is weighted average.
D)cannot be determined from the information given.

Question

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The Answer of Kingman Company had 500 units of "Dink" in its inventory at a cost of $5 each.It purchased, for $2,400, 300 more units of "Dink".Kingman then sold 600 units at a selling price of $10 each, resulting in a gross profit of $2,100.The cost flow assumption used by Kingman
A)is FIFO.
B)is LIFO.
C)is weighted average.
D)cannot be determined from the information given.

Kingman Company Had 500 Units of "Dink" in Its Inventory