A Company Had the Following Purchases and Sales During Its

question 123

Multiple Choice

A company had the following purchases and sales during its first year of operations: $$\begin{array} { | l | l | l | } \hline & \text { Purchases } & \text { Sales } \\\hline \text { January: } & 10 \text { units at } \$ 120 & 6 \text { units } \\\hline \text { February: } & 20 \text { units at } \$ 125 & 5 \text { units } \\\hline \text { May: } & 15 \text { units at } \$ 130 & 9 \text { units } \\\hline \text { September: } & 12 \text { units at } \$ 135 & 8 \text { units } \\\hline \text { November: } & 10 \text { units at } \$ 140 & 13 \text { units } \\\hline\end{array}$$ On December 31, there were 26 units remaining in ending inventory. Using the Perpetual LIFO inventory valuation method, what is the value of cost of goods sold? (Assume all sales were made on the last day of the month.)

• A)$5,470.
• B)$8,670.
• C)$5,305.
• D)$5,130.
• E)$5,400.

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Definitions:

Self-Serving Bias

A common cognitive bias that leads individuals to attribute successes to internal factors and failures to external factors.

Unrealistic Deadlines

Time constraints set on a task or project that are not reasonable or achievable based on the current resources, scope, or circumstances.

Fundamental Attribution Error

The cognitive bias of attributing other people's actions to their character or personality while underestimating situational influences.

Selective Perception

The process by which individuals perceive what they want in media messages while ignoring opposing viewpoints.