Moss Co Uses the FIFO Method to Calculate Ending Inventory

question 50

Multiple Choice

Moss Co. uses the FIFO method to calculate ending inventory. Assuming 300 units are not sold, the cost of goods sold is:

• A)$7,600
• B)$7,280
• C)$3,120
• D)$3,400
• E)None of these

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Definitions:

Opportunity Cost

The value of the next best alternative forgone as the result of making a decision.

True Cost

The comprehensive cost of a good or service, including all direct and indirect expenditures as well as environmental and social impacts.

Price Floors

Price Floors are legally established minimum prices for goods or services, below which they cannot be sold, usually set to protect producers.

Equilibrium

The state in a market where the quantity supplied equals the quantity demanded, and there is no incentive for price to change.