Classic Floors Has the Following Inventory Data Assuming That a Perpetual Inventory System Is Used, What Is

question 179

Multiple Choice

Classic Floors has the following inventory data: $$\begin{array} { r l c } \text { July } 1 & \text { Beginning inventory } & 30 \text { units at } \$ 6.00 \\5 & \text { Purchases } & 120 \text { units at } \$ 6.60 \\14 & \text { Sale } & 80 \text { units } \\21 & \text { Purchases } & 60 \text { units at } \$ 7.20 \\30 & \text { Sale } & 56 \text { units }\end{array}$$ Assuming that a perpetual inventory system is used, what is the cost of goods sold on a LIFO basis for July?

• A)$931.20
• B)$472.80
• C)$1,404.00
• D)$696.00

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Definitions:

Common Dividends

Payments made out of a company's profits to shareholders, representing a share in the earnings of the company.

Shares Outstanding

Shares outstanding refer to the total number of shares of a company held by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s insiders.

BEP

BEP, or Break-Even Point, is the financial analysis point at which total costs and total revenues are equal, implying no net loss or gain.

Operating Costs

Expenses associated with the day-to-day operations of a business, including costs of goods sold, payroll, and overhead.