Use This Inventory Information for the Month of May to Answer

question 35

Multiple Choice

Use this inventory information for the month of May to answer the following question. Assuming that a periodic inventory system is used,what is cost of goods sold on a FIFO basis?

• A) $2,880
• B) $5,120
• C) $5,200
• D) $2,800

---

Definitions:

Segregation Of Duties

An internal control measure that divides responsibilities among multiple employees to reduce risk of fraud or error.

Adjusted Cash Balance

The cash balance reported in the financial statements, adjusted for any outstanding checks and deposits in transit that have not yet been cleared or recorded by the bank.

Deposit In Transit

Refers to money that has been received and recorded by a business but has not yet been recorded by the bank.

Check Printing Charge

A fee charged by banks or financial institutions for printing and providing checks for an account holder's use.