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

question 212

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 $30,000 in the beginning inventory. On August 10, 20,000 units were purchased for $6 per unit. On August 15, 24,000 units were sold for $12 per unit. The amount charged to cost of goods sold on August 15 was

• A) $30,000.
• B) $108,000.
• C) $120,000.
• D) $144,000.

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Definitions:

Household Members

Individuals who reside in the same home and often share living expenses; may include family members and roommates.

Implied Warranty of Assignability

An assurance within the scope of the law that a contract can be transferred or assigned to another party.

Common Law

A legal system based on judicial decisions and precedent rather than statutory laws.

Warranties of Title

Legal guarantees provided by a seller that they have the right to sell the property and that there are no encumbrances against it.