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.

---

Definitions:

Autonomic Reflexes

Involuntary actions mediated by the autonomic nervous system that regulate bodily functions such as heart rate and digestion.

Medulla Oblongata

The lower part of the brainstem, controlling autonomic functions such as breathing, heart rate, and digestion.

Spinal Cord

A long, thin, tubular structure made up of nervous tissue, extending from the medulla oblongata in the brainstem to the lumbar region of the vertebral column, transmitting neural signals between the brain and the body.

Parasympathetic System

A branch of the autonomic nervous system responsible for conserving energy and controlling bodily functions during rest.