The company reports cost of goods sold of $16,000. Which inventory cost method is the company using?

A company has the following inventory information for the year:


January 1 Beginning inventory = 100 units @ $10

Mar5 Purchased 500 units @ $12

September 20 Purchased 800 units @ $15

Total sales for the year = 1,200 units


The company reports cost of goods sold of $16,000. Which inventory cost method is the company using?


A) FIFO.

B) LIFO.

C) Weighted-average.

D) The answer cannot be determined with the information given.


Answer: A


Learn More :