Patricia Is a Business Owner Who Is Trying to Determine

question 43

Multiple Choice

Patricia is a business owner who is trying to determine her cost of goods sold for 2015. She bought 20 units of inventory at $11, then 26 units at $10, and finally 18 units at $14. She sold 30 units at an average price of $16 per unit in 2015 and uses FIFO for her inventory valuation. What was her cost of goods sold in 2015, assuming that there was no inventory at the beginning of the year? ​

• A)$320
• B)$330
• C)$480
• D)$732
• E)None of the above

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Definitions:

In-Transit Inventory

Goods and materials that are on their way to the customer or destination but have not yet arrived.

Supplier Location

The physical geographical position of a supplier, which can significantly impact logistics, costs, and supply chain efficiency.

Setup Costs

Refers to the expenses incurred to get equipment ready to process a different batch of goods.

Suppliers

Entities that provide goods or services to another organization, often part of the supply chain.