Delta Diamonds Uses a Periodic Inventory System

question 124

Multiple Choice

Delta Diamonds uses a periodic inventory system.The company had five one-carat diamonds available for sale this year: one was purchased on June 1 for $500,two were purchased on July 9 for $550 each,and two were purchased on September 23 for $600 each.On December 24,it sold one of the diamonds that was purchased on July 9.Using the FIFO method,its cost of goods sold for the year ended is:

• A)$1,100.
• B)$600.
• C)$1,200.
• D)$500.

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Definitions:

Osteoporosis

A bone disease characterized by decreased density and strength of the bones, leading to an increased risk of fractures.

Brittle

Referring to a physical property where a material is hard but easily broken or cracked.

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The transitional period leading up to menopause, during which a woman may experience changes in her menstrual cycle, symptoms of hormonal fluctuation, and the end of her reproductive years.

Menstrual Cycle

The regular natural change that occurs in the female reproductive system, making pregnancy possible.