During July the Following Purchases and Sales Were Made by Phast

question 197

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. $\begin{array}{rcrc} & \text { Purchases } & & \text { Sales } \\\text { July } 3 & 40 \text { units @ } \$ 14 & \text { July } 13 & 50 \text { units } \\11 & 40 \text { units } @ \$ 15 & 22 & 20 \text { units } \\20 & 20 \text { units } @ \$ 16 & &\end{array}$
Under the LIFO 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:

Checkable Deposit Liabilities

These are bank account deposits that are immediately available to make payments and transfers, typically seen in checking accounts.

Excess Reserves

Funds that banks hold over and above the required minimum reserves set by the central bank, available for lending or investment.

United States Bonds

United States Bonds are debt securities issued by the U.S. Department of the Treasury to finance government spending as an alternative to taxation.

Money Supply

The complete sum of money available within an economy at a designated time frame.