The Inventory Data for an Item for November Are Using a Perpetual System, What Is the Cost of the

question 181

Multiple Choice

The inventory data for an item for November are: $$\begin{array} { r l l } \text { Nov. } 1 & \text { Inventory } & 20 \text { units at } \$ 19 \\4 & \text { Sold } & 10 \text { units } \\10 & \text { Purchased } & 30 \text { units at } \$ 20 \\17 & \text { Sold } & 20 \text { units } \\30 & \text { Purchased } & 10 \text { units at } \$ 21\end{array}$$ Using a perpetual system, what is the cost of the merchandise sold for November if the company uses FIFO?

• A) $610
• B) $600
• C) $590
• D) $580

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Definitions:

Investment Account

A financial account held by an investment dealer that a client uses to keep and trade investment securities.

Equity Method

An accounting technique used to record investments in associate companies where the investor has significant influence but not full control.

Investor's Share

The portion of profits or losses attributed to an investor, based on their ownership percentage in an investment.

Other-Than-Temporary

A classification for a decline in the value of an investment or asset when the loss is not expected to be recovered in the short term, often requiring the asset to be written down to its reduced value permanently.