Chess Top Uses the Periodic Inventory System

question 27

Multiple Choice

Chess Top uses the periodic inventory system. For the current month, the beginning inventory consisted of 360 units that cost $65 each. During the month, the company made two purchases: 540 units at $68 each and 270 units at $70 each. Chess Top also sold 900 units during the month. Using the average cost method, what is the amount of ending inventory?

• A) $18,900.
• B) $60,786.
• C) $60,120.
• D) $18,236.

---

Definitions:

Evaluating Performance

The process of assessing and reviewing the productivity, effectiveness, and efficiency of an individual, group, or entity, often in a business context.

Recurring Basis

A consistent and ongoing manner of operation or occurrence, typically referring to events or processes that happen at regular intervals.

Service Enterprises

Businesses that provide intangible products or services to customers, rather than selling physical goods.

Anticipated Services

Services that are expected to be provided in the future as part of a business agreement or contract.