Kappa Uses the FIFO Assumption with the Periodic Inventory Method

question 16

Multiple Choice

Kappa uses the FIFO assumption with the periodic inventory method. $\begin{array}{lccc}&\text { Units }&\text {Unit }&\text {Total }\\&&\text{Cost}&\text{Cost}\\\text { Beginning Inventory } & 10 & \$ 10 & \$ 100 \\\text { Purchase } & 10 & \$ 12 & \$ 120 \\\text { Purchase } & 8 & \$ 9 & \$ 72\end{array}$ Sales during year were 14 units.What was the value assigned to the closing stock of this item at the end of the period?

• A)$84
• B)$98
• C)$108
• D)$144