Vargas Company Uses the Perpetual Inventory System and the FIFO

question 38

Multiple Choice

Vargas Company uses the perpetual inventory system and the FIFO cost flow method. During the current year, Vargas purchased 1,300 units of inventory that cost $14 each. At a later dateduring the year, the company purchased an additional 1,700 units of inventory that cost $15 each. Vargas sold 1,400 units of inventory for $18.What is the amount of cost of goods sold that will appear on the current year's income statement?

• A)$5,500
• B)$18,200
• C)$4,200
• D)$19,700

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Definitions:

Scheduling

The process of planning and organizing tasks or events by allocating resources and setting specific time frames for completion.

Motivating Employees

The process of providing incentives, encouragement, and an environment that stimulates employees to achieve their best performance and engagement.

Inventory Turnover

A measure of how often a company's inventory is sold and replaced over a certain period, indicating efficiency in managing stock.

Discount Stores

General merchandise outlets that offer brand-name and private-label products at low prices.