Use this fact set for Part 2: Questions 2-7: Three retailing giants, Best Buy Co., Inc. (NYSE: BBY), Amazon.com, Inc., (NASDAQ: AMZN), and Target Corporation (NYSE: TGT) each use a different inventory costing method. Best Buy uses weighted-average cost, Amazon uses FIFO, and Target uses LIFO. As you will see from the hypothetical example below, the use of a different inventory costing method will lead to differences in income statements and balance sheets. Best Buy, Amazon and Target sell a popular shirt for $33. Lets assume that all three companies have the same sale and inventory purchase pattern for the same period. Beginning inventory: 30,000 @ $10.00 Purchases: 20,000 @ $15.00 Ending inventory: 10,000

Question 5 of 7

0.7 Points

What is cost of goods sold, gross profit and cost of ending inventory for Target using the LIFO inventory costing method?

A. $500,000; $820,000; $100,000
B. $450,000; $870,000; $150,000
C. $400,000; $920,000; $200,000
D. $300,000; $1,020,000; $300,000