Hardware Inc

question 59

Multiple Choice

Hardware Inc.has a periodic inventory system and uses the weighted average method.The company began the year with 150 large brass switch plates on hand at a cost of $4.00 each.Purchases of switch plates during the year were as follows: The switch plates sell for $7.00 each.If Hardware sells 570 switch plates during the year,what is the company's cost of goods sold?

• A)$3,990
• B)$2,508
• C)$2,480
• D)$2,560

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Definitions:

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity levels, making it more useful for management control.

Equipment Depreciation

The allocation of the cost of tangible assets over their useful lives, reflecting the reduction in value due to wear and usage.

Spending Variance

The difference between the budgeted or planned amount of expenses and the actual amount spent.

Supplies Costs

Expenses associated with the purchase of supplies needed for the operation of a business or the production of goods.