A Company Had the Following Purchases and Sales During Its

question 48

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 Periodic 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)$3,200.
• C)$5,130.
• D)$5,400.
• E)$8,670.

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Definitions:

Corrective Action

Measures taken to rectify a problem, defect, or deficiency in a process or a product to ensure that it meets its specifications and requirements.

Relative Approach

A method of evaluation or judgment that is based on comparisons with other entities, situations, or standards, rather than absolute measures.

Desired Performance

The specific level or standard of work output or behavior that an organization expects from an employee.

Actual Performance

The real, measured outcomes of work activities or processes, as opposed to expected or assumed results.