Glew Corporation Has Provided the Following Information

question 227

Multiple Choice

Glew Corporation has provided the following information:

-For financial reporting purposes,the total amount of period costs incurred to sell 4,000 units is closest to:

• A) $6,400
• B) $9,600
• C) $4,000
• D) $5,600

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Definitions:

Periodic Inventory Method

An accounting method that updates inventory and cost of goods sold figures at the end of an accounting period, not at each sale.

Cost Of Merchandise Sold

The total cost incurred to purchase or produce the goods that have been sold to customers during a specific period.

Gross Profit

The difference between revenue and the cost of goods sold, indicating the amount before deducting operating expenses.

Cost Of Merchandise Sold

The total expense incurred by a business to purchase or manufacture the goods sold during a period.