10th Generation Electronics Had Two Transformers in Its Inventory, One

Multiple Choice

10th Generation Electronics had two transformers in its inventory, one purchased in February for $11,800 and the other acquired in September for $13,300. In December, they sold one of the transformers to Ram Enterprises for $16,400 and reported a gross profit of $3,100. 10th Generation Electronics evidently uses the inventory valuation method.

A) FIFO
B) LIFO
C) Average
D) Flexplus