Jensan Company Jensan Uses a Perpetual Inventory System and Had the Following

question 42

Multiple Choice

Jensan Company
Jensan uses a perpetual inventory system and had the following inventory transactions for the month of June.
The June 30th inventory included 45 units from the June 4th purchase and 45 units from the June 10th purchase.
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Refer to the information provided for Jensan Company. What is the cost of goods sold for June under the specific identification method?

• A) $2,263.00
• B) $2,270.00
• C) $2,260.00
• D) $3,626.50

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Definitions:

External Benefits

refer to positive effects of a transaction or activity on third parties who are not directly involved in the transaction.

Economic Efficiency

A situation in which resources are optimally allocated to serve each individual or entity in the best way while minimizing waste and inefficiency.

Market

A system or an environment where buyers and sellers interact to trade goods, services, or financial instruments.

Free-rider Problem

A situation where individuals consume goods or services without paying for them, which typically occurs with non-excludable and non-rival public goods.