Sawyer Company Uses the Perpetual Inventory System and the Moving-Average

question 212

Multiple Choice

Sawyer Company uses the perpetual inventory system and the moving-average method to value inventories. On August 1, there were 10,000 units valued at $30,000 in the beginning inventory. On August 10, 20,000 units were purchased for $6 per unit. On August 15, 24,000 units were sold for $12 per unit. The amount charged to cost of goods sold on August 15 was

• A) $30,000.
• B) $108,000.
• C) $120,000.
• D) $144,000.

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Definitions:

Terminate

To bring something to an end or conclusion, often used in the context of ending employment, contracts, or legal relationships.

Agency

A relationship between two parties in which one party (the agent) agrees to represent or act for the other (the principal).

Improbable

Unlikely to occur or be true.

Estopped

Estopped refers to a legal principle that prevents a person from arguing something contrary to a claim they previously made or agreed to by their actions or words.