When using the average method under the periodic inventory system the average cost is calculated:

(A) after each new sale and sales return.

(B)after each new purchase.

(C) at the end of the period.

(D) after each new purchase and purchase return.

question 2

In a period of rising prices, which of the following inventory cost formulas generally results in the lowest net income figure? (A) Need more information to answer

(B) FIFO

(C) The inventory cost formula only affects the statement of financial position

(D) Average cost

question 3

Once goods leave the premises of the seller, they should never be added to the sellers physical inventory count. (A) True

(B) False