10^th Generation Electronics Had Two Transformers in Its Inventory,one Purchased

question 370

Multiple Choice

10^th Generation Electronics had two transformers in its inventory,one purchased in February for $11,800 and the other acquired in September for $13,300.In December,they sold one of the transformers to Ram Enterprises for $16,400 and reported a gross profit of $3,100.10^th Generation Electronics evidently uses the ________ inventory valuation method.

• A)FIFO
• B)LIFO
• C)Average
• D)Flexplus