Wakefield Company Uses a Perpetual Inventory System

question 48

Multiple Choice

Wakefield Company uses a perpetual inventory system. In August, it sold 2,000 units from its LIFO-base inventory, which had originally cost $35 per unit. The replacement cost is expected to be $45 per unit. The company is planning to reduce its inventory and expects to replace only 1,500 of these units by December 31, the end of its fiscal year. The company replaced 1,500 units in November at an actual cost of $50 per unit.
Based on the preceding information, in the entry to record the replacement of the 1,500 units in November, Cost of Goods Sold will be debited for:

• A) $52,500.
• B) $22,500.
• C) $15,000.
• D) $7,500.

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Definitions:

Bladder Infection

An infection in the urinary bladder, typically caused by bacteria, leading to symptoms such as pain, urination difficulties, and possibly fever.

Toileting Schedules

Structured time plans designed to develop consistent bathroom use, often used in continence training or care of individuals with certain disabilities.

Habit Training

A method of behavior modification that involves establishing routines or habits to encourage desirable actions and discourage unwanted ones.

Timed Voiding

A bladder training technique involving urinating at set intervals to manage urinary incontinence.