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.

---

Definitions:

Dispositional Attribution

The tendency to attribute people's behaviors to their internal qualities, traits, or character, rather than to situational factors.

Aggressive

A behavior characterized by being ready or likely to attack or confront; involving forceful actions or tactics.

False Consensus Effect

The cognitive bias to overestimate how much other people share our beliefs, attitudes, and behaviors.

Self-serving Bias

The common habit of a person taking credit for positive events or outcomes, but blaming outside factors for negative events.