Checkers Uses the Periodic Inventory System

question 122

Multiple Choice

Checkers uses the periodic inventory system.For the current month, the beginning inventory consisted of 1,200 units that cost $12 each.During the month, the company made two purchases: 500 units at $13 each and 2,000 units at $13.50 each.Checkers also sold 2,150 units during the month.Using the LIFO method, what is the ending inventory?

• A)$20,073.
• B)$18,600.
• C)$20,925.
• D)$18,950.

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Definitions:

Outstanding Balance

The amount of money owed that remains in a borrower's account, excluding interest and fees, that has not yet been paid.

Invoice

A document issued by a seller to a buyer, indicating items sold, prices, date of shipment, delivery and payment terms.

Payment

The act of giving money in exchange for goods or services.

EOM

End of Month, a term often used in the context of finance and accounting to denote processes or evaluations performed at the close of the month.