T-Shirt City Uses a Periodic Inventory System

Multiple Choice

T-Shirt City uses a periodic inventory system. During the first year of operations, the company made four purchases of a particular product. Each purchase was for 500 units and the prices were: $9 per unit in the first purchase, $10 per unit in the second purchase, $12 per unit in the third purchase, and $13 per unit in the fourth purchase. At year-end, 650 of these units remained unsold. Compute the cost of goods sold under the FIFO method and LIFO method, respectively.

A) $13,700 (FIFO) and $16,000 (LIFO) .
B) $8,300 (FIFO) and $6,000 (LIFO) .
C) $16,000 (FIFO) and $13,700 (LIFO) .
D) $6,000 (FIFO) and $8,300 (LIFO) .