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 FIFO method,its ending inventory (after the December 24 sale) equals:

A) $2,300.
B) $2,800.
C) $2,200.
D) $2,250.