A Company Purchased 100 Units for $20 Each on 31

question 78

Multiple Choice

A company purchased 100 units for $20 each on 31 January. It purchased 100 units for $30 on 28 February. It sold 150 units for $45 each from 1 March through to 31 December. If the company uses the average cost inventory costing method, what is the amount of Cost of sales on the 31 December income statement?

• A)$6 750
• B)$3 750
• C)$3 500
• D)$4 000

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Definitions:

Organizational Structure

The system that outlines how certain activities are directed in order to achieve the goals of an organization, including rules, roles, and responsibilities.

Executive Branch

The branch of government responsible for enforcing laws, typically headed by the President or Prime Minister, and including various departments and agencies.

Managerial Presidency

A concept where the President manages the executive branch of government, emphasising efficiency, effectiveness, and administrative control.

Scientific Expertise

The specialized knowledge and skills in a field of science, often used to inform decision-making or research.