Monarch Company Uses a Weighted-Average Perpetual Inventory System and Has

question 6

Multiple Choice

Monarch Company uses a weighted-average perpetual inventory system and has the following purchases and sales: $\begin{array}{|l|l|}\hline \text { January 1 } & 20 \text { units were purchased at } \$ 10 \text { per unit. } \\\hline \text { January 12 } & 12 \text { units were sold. } \\\hline \text { January 20 } & 18 \text { units were purchased at } \$ 11 \text { per unit. } \\\hline\end{array}$ What is the value of cost of goods sold?

• A)$272.
• B)$126.
• C)$120.
• D)$278.
• E)$398.

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Definitions:

Risk Assessment

The process of identifying and evaluating potential risks that could negatively affect the achievement of objectives.

Internal Control

Procedures and policies implemented by a company to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.

Debt Investments

Investments made in securities that require the issuer to repay the principal along with interest.

Cash Equivalents

Short-term, highly liquid investments that are readily convertible to known amounts of cash and close to their maturity.