Use the Following Information for the Month of June for Questions

question 103

Multiple Choice

Use the following information for the month of June for questions
XYZ Inc.uses the average cost formula in a perpetual inventory system.
(Use unrounded numbers in your calculations but round to the nearest cent for presentation purposes in your answer.)

-Total cost of goods sold for the month of June is

• A)$2,914.65.
• B)$2,934.96.
• C)$2,946.24.
• D)$2,994.80.

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Definitions:

Standard Costs

The estimated pre-determined costs of manufacturing a product or providing a service, used for budgeting and performance evaluation purposes.

Actual Costs

The real costs incurred as opposed to budgeted or forecasted amounts.

Significant Differences

Notable disparities or variations between compared entities or items, often requiring attention or adjustment in analysis or evaluation.

Price Variance

The difference between the actual price paid for a good or service and its expected or budgeted price.