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

Quizplus · Accepted Answer

The company used the FIFO (First-In, First-Out) inventory method since the ending inventory is reported at $357, which is the value of the most recent units (January 30th) multiplied by their purchase price of $9.

A Company Sells a Climbing Kit and Uses the Periodic