McCarthy Company Has Inventory of 8 Units at a Cost

question 71

Multiple Choice

McCarthy Company has inventory of 8 units at a cost of $200 each on October 1.On October 2,it purchased 20 units at $205 each.11 units are sold on October 4.Using the FIFO perpetual inventory method,what amount will be reported in cost of goods sold for the 11 units that were sold?

• A)$2,239.
• B)$2,255.
• C)$2,200.
• D)$2,228.
• E)$2,215.

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Definitions:

Forging Process

A manufacturing technique involving the shaping of metal using localized compressive forces, often hammering or pressing.

Upper Control Limit

The highest value on a control chart that indicates the limit of variation acceptable for a process in statistical quality control.

Compressive Strength

The capacity of a material or structure to withstand loads tending to reduce size, typically measured in pounds per square inch or megapascals.

Injection Molding

A manufacturing process for producing parts by injecting material into a mold, commonly used with plastics but also other materials.