A Company That Uses the Perpetual Inventory System Purchased 500

question 125

Short Answer

A company that uses the perpetual inventory system purchased 500 pallets of industrial soap for $10,000 and paid $750 for the freight-in. The company sold the whole lot to a supermarket chain for $14,000 on account. The company uses the specific-identification method of inventory costing. Which of the following entries correctly records the cost of goods sold?

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Definitions:

Discrimination

Unfair or prejudicial treatment of individuals based on characteristics such as race, gender, age, or sexual orientation.

Equal Pay Act

A law that requires men and women to be given equal pay for equal work in the same establishment.

Night Shift

A work schedule involving labor during the night hours, typically covering the period from late evening to early morning.

United States Supreme Court

The highest federal court in the U.S., with ultimate judicial authority to interpret and decide questions of federal law, including constitutional issues.