During July the Following Purchases and Sales Were Made by Phast

question 187

Short Answer

During July the following purchases and sales were made by Phast Company. There was no beginning inventory. Phast Company uses a perpetual inventory system. $$\begin{array} { r r r r } & \text { Purchases } && \text { Sales } \\\text { July } 3 & 40 \text { units }@\$ 14 & \text { July } 13 & 50 \text { units } \\11 & 40 \text { units } @ \$ 15 & 22 & 20 \text { units } \\20 & 20 \text { units } @\$ 16 & &\end{array}$$ Under the FIFO method the cost of goods sold for each sale is: $\begin{array} { l r r } & { \text { July 13 } } & \text { July 22 } \\\end{array}$
A) $\begin{array} { l r r } & \$ 700 && \$ 280 \\\end{array}$
B) $\begin{array} { l r r } & 710 &&& 300 \\\end{array}$
C) $\begin{array} { l r r } & 750 &&& 300 \\\end{array}$
D) $\begin{array} { l r r } & 800 &&& 320\end{array}$

• A) \(\begin{array} { l r r } & \$ 700 && \$ 280 \\\end{array}\)
• B) \(\begin{array} { l r r } & 710 &&& 300 \\\end{array}\)
• C)\(\begin{array} { l r r } & 750 &&& 300 \\\end{array}\)
• D)\(\begin{array} { l r r } & 800 &&& 320
• \end{array}\)

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Definitions:

Expected Time Horizon

The specific duration in which an event is anticipated to occur or a goal is expected to be achieved.

Investment Allowance

A tax incentive that allows businesses to deduct a certain percentage of their investment in qualifying assets from their taxable income.

Net Cash Flow Impact

The effect on the total cash inflows and outflows for a business, considering all sources of revenue and expenses over a specific period.

Additional Working Capital

Extra funds a company needs to support its normal business operations and accommodate growth.