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

question 106

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 $50,000 in the beginning inventory. On August 10, 20,000 units were purchased for $10 per unit. On August 15, 24,000 units were sold for $20 per unit. The amount charged to cost of goods sold on August 15 was

• A) $50,000.
• B) $200,000.
• C) $240,000.
• D) $180,000.

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Definitions:

Net Domestic Product

A measure of a nation's total economic output, adjusted for depreciation; it is the gross domestic product (GDP) minus the depreciation on a country’s capital goods.

National Income

The total amount of money earned within a country from the production of goods and services over a specified period, usually a year.

GDP Deflator

An economic metric that converts output measured at current prices into constant-dollar GDP, stripping out the effects of inflation.

GDP

Gross Domestic Product, a measure of the total economic output of a country within a specific time period.