Starlight Company Has Inventory of 8 Units at a Cost

question 98

Multiple Choice

Starlight Company has inventory of 8 units at a cost of $200 each on October 1.On October 2,it purchased 20 units at $205 each.11 units are sold on October 4.Using the LIFO perpetual inventory method,what amount will be reported in cost of goods sold for the 11 units that were sold?

• A)$2,239.
• B)$2,255.
• C)$2,200.
• D)$2,228.
• E)$2,215.

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Definitions:

Regulatory Capture

A theory that describes the situation where a regulatory agency, created to act in the public's interest, eventually acts in favor of the commercial or special interests that dominate the industry it is charged with regulating.

Negative Externalities

Costs suffered by a third party due to an economic transaction that they were not a part of, often leading to market failure.

Human Safety

The condition of being protected from or unlikely to cause danger, risk, or injury to individuals.

Regulatory Capture

A theory that regulatory agencies may come to be dominated by the interests they're supposed to regulate, rather than serve the public interest.