Bombard Company Has the Following Data Available If Bombard Company Uses a Perpetual LIFO Inventory System, the l

question 84

Multiple Choice

Bombard Company has the following data available: $$\begin{array} { | l | c | c | c | } \hline \text { Transaction } & \text { Units Purchased } & \text { Unit Cost } & \text { Units Sold } \\\hline \text { Beginning Inventory } & 500 & \$ 10 & \\\hline \text { March 1 Purchase } & 200 & \$ 12 & \\\hline \text { April 25 Sale } & & & 350 \\\hline \text { June 10 Purchase } & 300 & \$ 14 & \\\hline \text { July 20 Sale } & & & 250 \\\hline \text { October 30 Purchase } & 350 & \$ 15 & \\\hline \text { December 15 Sale } & & & 400 \\\hline\end{array}$$
If Bombard Company uses a perpetual LIFO inventory system, the cost of goods sold for the year is ________.

• A) $3,500
• B) $5,520
• C) $16,850
• D) $13,350

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Definitions:

Retained Earnings

The portion of net income that is kept by a company rather than distributed to its shareholders as dividends, used for investment or paying off debt.

Social Insurance Contributions

Payments made to social security systems by employers, employees, or the self-employed, used to fund public programs such as pensions, unemployment benefits, and health care.

Transfer Payment

Payments made by the government to individuals for which no good or service is provided in return, such as welfare benefits.

Capital Equipment

Assets used by businesses to produce goods and services, such as machinery, tools, and buildings.