A Company Purchased Inventory for $800 Per Unit

question 61

Multiple Choice

A company purchased inventory for $800 per unit. The inventory was marked up to sell for $1,000 per unit. The entries to record the sale and the cost of a unit of inventory would include debits to which of the following accounts?

• A)Cash, $1,000; Cost of Goods Sold, $800
• B)Cash, $800; Cost of Goods Sold, $1,000
• C)Sales, $800; Inventory, $800
• D)Sales, $1,000; Inventory, $800

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Definitions:

Typeset

Typeset involves the art and process of arranging text and visual elements for printing or digital display, often for publications, books, or websites.

Demand Schedule

A table or graph that shows the quantity of a good or service that consumers are willing and able to purchase at various prices during a specific time period.

Marginal Cost

The cost of producing one additional unit of a product, highlighting the concept of increasing or decreasing costs with production scale.

Typeset

The arrangement and composition of text material by means of types, including digital forms for printing or display.