Maxell Company uses the FIFO method to assign costs to inventory and cost of goods sold.The company uses a periodic inventory system.Consider the following information:

What amounts would be reported as the cost of goods sold and ending inventory balances for the year?
A) Cost of goods sold $625; Ending inventory $175
B) Cost of goods sold $755; Ending inventory $225
C) Cost of goods sold $550; Ending inventory $250
D) Cost of goods sold $600; Ending inventory $200

Question

Maxell Company uses the FIFO method to assign costs to inventory and cost of goods sold.The company uses a periodic inventory system.Consider the following information:

What amounts would be reported as the cost of goods sold and ending inventory balances for the year?
A) Cost of goods sold $625; Ending inventory $175 
B) Cost of goods sold $755; Ending inventory $225 
C) Cost of goods sold $550; Ending inventory $250 
D) Cost of goods sold $600; Ending inventory $200

Quizplus · Accepted Answer

The Answer of Maxell Company uses the FIFO method to assign costs to inventory and cost of goods sold.The company uses a periodic inventory system.Consider the following information:

What amounts would be reported as the cost of goods sold and ending inventory balances for the year?
A) Cost of goods sold $625; Ending inventory $175 
B) Cost of goods sold $755; Ending inventory $225 
C) Cost of goods sold $550; Ending inventory $250 
D) Cost of goods sold $600; Ending inventory $200

Maxell Company Uses the FIFO Method to Assign Costs to Inventory