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
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