Diligent Ltd Had 5 Units of the Commodity Algo on Hand

question 37

Multiple Choice

Diligent Ltd had 5 units of the commodity Algo on hand at 1 September 2016. The following purchases and sales were made during September:

What was the value of cost of goods sold of Algo, using the LIFO assumption in a perpetual inventory system?

• A) $2600
• B) $2700
• C) $2720
• D) $1400

---

Definitions:

Fovea

A small depression in the retina of the eye where visual acuity is highest due to the concentration of cones.

Cones

Photoreceptor cells in the retina of the eye responsible for color vision and functioning best in relatively bright light.

Rods

Photoreceptor cells in the retina of the eye that are sensitive to low light levels and contribute to black-and-white vision.

Trichromatic Theory

The theory of color vision suggesting that three types of cones in the retina each make a maximal chemical response to one of three colors—blue, green, or red.