Kahn Company had 500 units of “Dink” in its inventory at a cost of $5 each. It purchased, for $2,400

/in /by

Kahn Company had 500 units of “Dink” in its inventory at a cost of $5 each. It purchased, for $2,400, 300 more units of “Dink”. Kahn then sold 600 units at a selling price of $10 each, resulting in a gross profit of $2,100. The cost flow assumption used by Kahn

a. is FIFO.

b. is LIFO.

c. is weighted average.

d. cannot be determined from the information given.