Gordon Company Has the Following Data Available If Gordon Company Uses a Perpetual FIFO Inventory System, the l

question 27

Multiple Choice

Gordon Company has the following data available: $$\begin{array} { | l | c | c | c | } \hline \text { Transaction } & \text { Units Purchased } & \text { Unit Cost } & \text { Units Sold } \\\hline \text { Beginning Inventory } & 300 & \$ 20 & \\\hline \text { March 1 Purchase } & 200 & \$ 12 & \\\hline \text { April 25 Sale } & & & 350 \\\hline \text { June 10 Purchase } & 380 & \$ 14 & \\\hline \text { July 20 Sale } & & & 210 \\\hline \text { October 30 Purchase } & 250 & \$ 14 & \\\hline \text { December 15 Sale } & & & 350 \\\hline\end{array}$$
If Gordon Company uses a perpetual FIFO inventory system, the cost of ending inventory on December 31 is ________.

• A) $18,200
• B) $12,740
• C) $3,080
• D) $4,400

---

Definitions:

Too Optimistic

Characterizes a perspective or expectation that is overly positive or hopeful, often without sufficient grounding in reality.

Exact Value

The precise numerical quantity or measurement without any approximation or error.

Same for All

A condition or policy applied equally to every member of a group.

Common-value Setting

An environment in which the value of an item or resource is the same for all participants but may be unknown at the time of transaction.