-If Shillings Is Using a Perpetual System and the FIFO

question 34

Multiple Choice

$\begin{array}{l}\text { Shillings had the following inventory activity during April: }\\\\\begin{array} { | l | r | r | r | } \hline & \text { Units } & \text { Unit cost } & \text { Total cost } \\\hline \text { Beginning inventory } & 800 & \$ 10.00 & \$ 8,000 \\\hline \text { Purchase: April 4 } & 1,400 & 11.00 & 15,400 \\\hline \text { Sale: April 8 } & ( 1,500 ) & & \\\hline \text { Purchase: April 12 } & 900 & 10.50 & 9,450 \\\hline \text { Sales: April 24 } & ( 900 ) & & \\\hline\end{array}\end{array}$
-If Shillings is using a perpetual system and the FIFO costing assumption, what is the cost of goods sold closest to?

• A) $25,700
• B) $25,500
• C) $25,930
• D) $22,400

Understand the principles of super-variable costing and its effect on net operating income.

Calculate net operating income using variable and super-variable costing methods.

Analyze the effect of production and sales volume differences on net operating income.

Comprehend the comparison between variable costing and absorption costing systems.

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Definitions:

Reflexes

Automatic, involuntary responses to specific stimuli that are designed to protect the body or facilitate survival.

Spinal Column

The structural backbone of vertebrates, consisting of a series of bones or vertebrae that protect the spinal cord.

Neurons

Neurons are the basic working units of the brain and nervous system, responsible for receiving sensory input from the external world, sending motor commands to our muscles, and transforming and relaying the electrical signals at every step in between.

Hormones

Chemical messengers produced by the endocrine glands that regulate various bodily functions and behaviors.