Use the Following Information for Questions:
Berenger Industries Had the Following

question 19

Multiple Choice

Use the following information for questions:
Berenger Industries had the following activity with one of its inventory items during the current period: $\begin{array}{llrr}&\text { Units } & \text {Unit Cost }\\\hline\text { Beginning inventory } & 30 & \$ 8.00 \\\text { Purchase } & \text { October 5 } & 80 & 10.50 \\\text { Sale } & \text { October 11 } & (40) & \\\text { Purchase } & \text { October 17 } & 60 & 12.00 \\\text { Sale } & \text { October 26 } & (70) &\end{array}$
-Using a perpetual inventory system and the FIFO cost flow assumption, the cost of goods sold was:

• A)$975
• B)$1,080
• C)$1,175
• D)$1,300

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Definitions:

Price Levels

The overall mean cost of the wide spectrum of goods and services in the economy.

Real GDP

Gross Domestic Product adjusted for inflation, representing the value of all goods and services produced over a specific time period at constant prices.

Depreciation

The gradual reduction in the economic value of the physical assets of a company due to wear and tear over time, or the loss in value of a currency.

NDP

Net Domestic Product; it calculates the total value of all goods and services produced within a country in a specific period minus depreciation.