A Company Has Just Completed Its Second Year of Operations

question 20

Multiple Choice

A company has just completed its second year of operations.It will use the FIFO,LCM retail method for external reporting.The following information is available $$\begin{array} { | l | r| r| } \hline & \text { Cost } & \text { Retail } \\\hline \text {Beginning inventory, January 1, 2002.}&\$7,200&\$12,000\\\hline \text {Sales revenues. }&35,200\\\hline \text {Purchases. }&31,200&48,000\\\hline \text {Net markdowns. }&12,800\\\hline \text {Net mark-ups. }&4,000\\\hline\end{array}$$ The 2002 cost of goods sold will be:

• A)$25,787
• B)$27,663
• C)$25,600
• D)$28,333

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