Use the Following to Answer Questions

question 67

Multiple Choice

Use the following to answer questions
Ashland Company has a perpetual inventory system and uses the FIFO method of inventory costing. Ashland had a beginning inventory of 50 units and reported the following events during the month of June:

-The cost of goods sold for the June 21 sale is:

• A)$480
• B)$400
• C)$440
• D)$560

---

Definitions:

Variable

An element that can change or vary, often used in mathematical modeling, programming, and statistical analysis to represent changeable data.

Committed Fixed Costs

Long-term fixed costs that cannot be easily altered in the short term, such as leases, insurance, and salaries for permanent staff.

Planning Horizon

The period into the future for which a company or individual makes plans and decisions, considering both short-term and long-term objectives.

Cost Of Goods Sold

Costs that are directly tied to the generation of products a company markets, including both materials and labor.