Moss Co Uses the FIFO Method to Calculate Ending Inventory

question 103

Multiple Choice

Moss Co. uses the FIFO method to calculate ending inventory. Assuming 300 units are not sold, the cost of goods sold is: $$\begin{array} { | l | l | l | } \hline \text { January 1 Inventory } & 200 \text { units at } \$ 9 & \$ 1,800 \\\hline \text { Feb 15 Purchase } & 300 \text { units at } \$ 10 & \$ 3,000 \\\hline \text { Aug 20 Purchase } & 400 \text { units at } \$ 11 & \$ 4,400 \\\hline \text { Dec 20 Purchase } & 100 \text { units at } \$ 12 & \$ 1,200 \\\hline\end{array}$$

• A)$7,600
• B)$7,280
• C)$3,120
• D)$3,400
• E)None of these

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Definitions:

Fama and French

A model developed by Eugene Fama and Kenneth French that expands on the Capital Asset Pricing Model (CAPM) by adding size risk and value risk factors to the market risk factor.

Technical Analysis

A technique for appraising securities through the study of market-generated statistics, like previous prices and transaction volumes.

Predictable Patterns

Patterns in financial markets or data sets that tend to repeat themselves over time, allowing for the anticipation of certain market movements under specific conditions.

P/E Ratios

The Price-to-Earnings Ratio is a valuation metric used to measure a company's current share price relative to its per-share earnings.