The Farley Corporation Starts the Year with a Beginning Inventory

question 165

Multiple Choice

The Farley Corporation starts the year with a beginning inventory of 3,000 units at $5 per unit.The company purchases 5,000 units at $4 each in February and 2,000 units at $6 each in March.Farley sells 1,500 units during this quarter.Farley has a perpetual inventory system and uses the FIFO inventory costing method.What is the cost of goods sold for the quarter?

• A) $6,000
• B) $9,340
• C) $7,500
• D) $9,000

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Definitions:

Performance Management System

A systematic approach used by organizations to improve and manage employee performance.

Performance Bonus

Additional financial compensation awarded to employees based on an evaluation of their work performance, often related to achieving specific targets or goals.

Gainsharing

A reward system where employees receive financial benefits from improvements in the company’s performance, encouraging collaboration and efficiency.

Gainsharing

A compensation strategy where employees receive bonuses based on the savings or gains achieved by their performance improvements, fostering collaboration and efficiency.