McCarthy Company Has Inventory of 8 Units at a Cost

question 209

Multiple Choice

McCarthy Company has inventory of 8 units at a cost of $200 each on October 1. On October 2, it purchased 20 units at $205 each. 11 units are sold on October 4.
-Using the FIFO perpetual inventory method, what is the value of inventory after the October 4 sale?

• A) $3,485.
• B) $3,445.
• C) $3,461.
• D) $3,472.
• E) $3,500.

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Definitions:

Unique Items

Objects or products that are distinct and not identical to any other items, often valued for their exclusivity or rarity.

Small Quantities

Small quantities refer to a less than usual or bulk amount of any material, product, or substance, often required in specific contexts like testing or sample production.

Robo-advisors

Automated platforms that provide financial advice or investment management online with minimal human intervention, using algorithms and software to optimize clients' assets.

Algorithms

Step-by-step procedures or formulas for solving a problem or performing a task.