Delta Diamonds Uses a Periodic Inventory System

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 cost of goods sold equals:

A) $1,200.
B) $1,100.
C) $600.
D) $500.