Tomas Company Uses the Perpetual Inventory System and the Moving-Average

question 159

Multiple Choice

Tomas Company uses the perpetual inventory system and the moving-average method to cost inventories. On August 1, there were 10,000 units reported at $30,000 in the beginning inventory. On August 10, 20,000 units were purchased for $4.95 per unit. On August 15, 25,000 units were sold for $12 per unit. The amount charged to cost of goods sold on August 15 was

• A) $30,000.
• B) $99,375.
• C) $107,500.
• D) $118,800.

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Definitions:

Agreed-upon

Something that has been mutually accepted or concurred by all parties involved.

LIBOR

An average interest rate calculated through submissions of interest rates by major banks in London, used as a benchmark for short-term interest rates around the world.

Eurodollars

U.S. dollars deposited in banks outside the United States, often used for international transactions.

Forward Trade

A financial agreement to buy or sell an asset at a predefined price on a specified future date, commonly used in foreign exchange and commodities markets.