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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