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

---

Definitions:

Base Fine

A fixed amount of money established as the starting point for fines related to violations or offenses, which can be adjusted based on specific circumstances.

Mala Prohibita

Acts that are crimes because legislation defines them as such, despite not being inherently evil or immoral.

Statutory Law

Law established by the enactment of legislation by a governing body, as opposed to case law or regulations promulgated by governmental agencies.

Common Law

A legal system based on judicial decisions and precedents, rather than codified laws.