Pearl Company Has a Perpetual Inventory System

question 7

Multiple Choice

Pearl Company has a perpetual inventory system.The company uses the FIFO method to assign costs to inventory and cost of goods sold.Consider the following information:

What amounts would be reported as cost of goods sold and ending inventory for April?

• A) Cost of goods sold $6,250; Ending inventory $1,750
• B) Cost of goods sold $7,550; Ending inventory $2,250
• C) Cost of goods sold $5,500; Ending inventory $2,500
• D) Cost of goods sold $6,000; Ending inventory $2,000

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Definitions:

Traditional Press Release

A written or recorded communication directed at members of the news media for the purpose of announcing something ostensibly newsworthy.

Ultimate Audience

The final or intended recipients of a message or piece of communication, often considered in the planning phase.

Good Purchase

A transaction or acquisition that is considered valuable or beneficial, often because of its quality, price, or utility.

News Releases

Official statements issued to the media to announce something of interest, aiming to generate positive coverage or inform the public.