Quan Uses a Periodic Inventory System

question 36

Multiple Choice

Quan uses a periodic inventory system. At the end of April, Quan had 20 units on hand. If Quan, Inc. uses FIFO inventory costing, how much is cost of goods sold for April?

• A) $230
• B) $232
• C) $240
• D) $250

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Definitions:

Compensating Wage Differential

Additional wages paid to workers to compensate them for undesirable job characteristics, such as poor working conditions or long hours.

Unfavorable Conditions

Circumstances that are not conducive to success or are disadvantageous to achieving goals.

Wage

The fixed regular payment, typically paid on a daily or weekly basis, made by an employer to an employee.

Firemen

Professionals dedicated to fighting fires, conducting rescue operations, and managing emergency situations that pose a threat to life, property, and the environment.