Addison, Inc

question 178

Multiple Choice

Addison, Inc. uses a perpetual inventory system. Below is information about one inventory item for the month of September.
-Use the information in the table to answer this question. Using a perpetual system, what is the cost of the goods sold for November if the company uses the weighted average cost method?

• A)$610
• B)$585
• C)$590
• D)$575

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Definitions:

Contribution Margin

The difference between sales revenue and variable costs, used to cover fixed costs and generate profit.

Relevant Range

The range of activity within which the assumptions about variable and fixed cost behavior are valid.

Comparative Income Statements

Financial statements that present the revenues, expenses, and net incomes of a business for multiple periods side by side for comparison.

Merchandising Company

A merchandising company is a business that purchases finished goods for resale, making profits through buying and selling rather than manufacturing.