Delta Diamonds Uses a Periodic Inventory System

question 132

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 LIFO method,its ending inventory (after the December 24 sale) equals:

• A)$2,300.
• B)$2,250.
• C)$600.
• D)$2,200.

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Definitions:

Infant formula

A manufactured food designed and marketed for feeding to babies and infants under 12 months of age, usually prepared for bottle-feeding or cup-feeding from powder or liquid.

Cow's milk

A common dairy product obtained from the milk of cows, used as a beverage or food ingredient.

Solid foods

Foods that are not liquid or pureed, introduced to an infant’s diet typically around six months of age to complement breastmilk or formula.

Whole cow's milk

The complete, unaltered milk obtained from cows, rich in nutrients like fat, protein, vitamins, and minerals, generally consumed after infancy.