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)Retail inventory method
C)Weighted average
D)Specific identification
E)FIFO

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)Retail inventory method 
C)Weighted average 
D)Specific identification 
E)FIFO

Quizplus · Accepted Answer

Since the company uses the periodic inventory system, we need to assume that the inventory is sold on a first-in, first-out (FIFO) basis, unless specified otherwise. Given the transactions and the ending inventory balance, the FIFO method is consistent with the reported ending inventory value of $357.

A Company Sells a Climbing Kit and Uses the Periodic