Singh Computer Shop Begins Operations on June 1 and Uses

question 133

Multiple Choice

Singh Computer Shop begins operations on June 1 and uses a perpetual inventory system. During June, the company had the following purchases and sales for its Model 10 Fastback Computer System:
-Using the FIFO cost formula, the amount allocated to cost of goods sold for June is

• A) $10,000.
• B) $10,600.
• C) $13,000.
• D) $20,800.

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Definitions:

Long Run

In economics, a period of time in which all factors of production and costs are variable and can be adjusted.

New Entrants

Businesses or individuals that recently entered a market or industry, bringing new competition and potentially disrupting existing dynamics.

Economic Profits

The financial gain obtained after subtracting both explicit and implicit costs from total revenues.

Perfectly Competitive Industry

An industry in which no single producer can influence the market price of the product because the conditions of perfect competition are met.