Tehran Ltd

question 109

Multiple Choice

Tehran Ltd.uses FIFO to cost its inventory.The following information is available for Tehran's inventory of product # 101:
Beginning inventory: 120 units @ $3.14 per unit
March 1: Purchase of 250 units @ $3.50 per unit
April 10: Sale of 100 units @ $5.10 per unit
Assuming Tehran uses the perpetual inventory system, the second entry to account for the April 10 sale is

• A)debit Cost of Goods Sold and credit Inventory, $350.
• B)debit Cost of Goods Sold and credit Purchases, $350.
• C)debit Cost of Goods Sold and credit Inventory, $314.
• D)debit Cost of Goods Sold and credit Purchases, $314.

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Definitions:

International Markets

Overseas markets where goods, services, and financial securities are traded or offered, creating a platform for global economic exchange and investment opportunities.

Steamship Design

The architectural planning and engineering process involved in creating steam-powered vessels, pivotal to the 19th-century transportation revolution.

Wage Labor

A socioeconomic relationship where a worker sells their labor under a formal or informal agreement, and is paid a periodic wage or salary, not owning the means of production or the product of their work.

Civil War

A war between citizens of the same country.