Vargas Company Uses the Perpetual Inventory System and the FIFO

question 39

Multiple Choice

Vargas Company uses the perpetual inventory system and the FIFO cost flow method.During the current year,Vargas purchased 400 units of inventory that cost $15.00 each.At a later date during the year,the company purchased an additional 800 units of inventory that cost $18.00 each.Vargas sold 500 units of inventory for $27.00.What is the amount of cost of goods sold that will appear on the current year's income statement?

• A)$7,800
• B)$6,000
• C)$4,500
• D)$5,700

---

Definitions:

Suprachiasmatic Nucleus

A region in the brain's hypothalamus responsible for controlling circadian rhythms, which are the body's internal biological clock.

Biological Clock

An internal mechanism that regulates bodily rhythms and cycles, such as the sleep-wake cycle, on a roughly 24-hour schedule.

Hypothalamus

A region of the brain that plays a crucial role in many essential functions, including hormone release, regulation of body temperature, and control of hunger and thirst.

Premenstrual Syndrome (PMS)

A condition that affects a woman's emotions, physical health, and behavior during certain days of the menstrual cycle, generally just before her menses.