The Following Information Pertains to the Fan Company's Inventory Item

question 28

Multiple Choice

The following information pertains to the Fan Company's inventory item B1008:
$\begin{array}{rlrr}\text { March 1 } & \text { Inventory Balance } & 400 \text { units } &@\$ 3.10 \\5 & \text { Purchase } & 1,400 \text { units } &@ \$ 3.20 \\14 & \text { Purchase } & 280 \text { units } &@ \$ 3.25 \\31 & \text { Inventory Balance } & 520 \text { units } &\end{array}$
-In a periodic inventory system,the LIFO cost of goods sold is

• A)$4,952.
• B)$4,967.
• C)$4,993.
• D)$5,006.

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Definitions:

General Ledger

A comprehensive record of all financial transactions over the life of a company, used to compile financial statements.

Cash Receipts

The accumulation of funds, usually through cash or checks, garnered by a company from its operational activities.

Accounts Payable

The amount of money a company owes to its suppliers or creditors for goods or services purchased on credit.

Subsidiary Posting

The process of transferring entries from the journal to the individual ledger accounts, often for the purpose of detailed accounting and tracking.