In a periodic inventory system, which of the following is NOT an inventory costing method used to assign costs to ending inventory and cost of goods sold?

• A. Weighted-average cost
• B. Last-in, first-out (LIFO)
• C. Straight-line depreciation
• D. First-in, first-out (FIFO)

Answer: (C)

Verified step by step guidance

1. Step 1: Understand that inventory costing methods are techniques used to assign costs to ending inventory and cost of goods sold (COGS) in a periodic inventory system.
2. Step 2: Identify the common inventory costing methods, which include First-in, First-out (FIFO), Last-in, First-out (LIFO), and Weighted-average cost. These methods determine how costs flow from inventory purchases to COGS and ending inventory.
3. Step 3: Recognize that Straight-line depreciation is not an inventory costing method; instead, it is a method used to allocate the cost of a fixed asset over its useful life.
4. Step 4: Compare the options given and note that Weighted-average cost, LIFO, and FIFO are all valid inventory costing methods, while Straight-line depreciation is unrelated to inventory costing.
5. Step 5: Conclude that the method NOT used to assign costs to ending inventory and COGS in a periodic inventory system is Straight-line depreciation.