Lewis Company Had the Following Balances and Transactions During 2016

question 14

Multiple Choice

Lewis Company had the following balances and transactions during 2016: $$\begin{array} { | l | l | } \hline \text { Beginning inventory } & 140 \text { units at } \$ 84 \\\hline 10 \text { March } & \text { Sold } 70 \text { units } \\\hline 10 \text { June } & \text { Purchased } 280 \text { units at } \$ 86 \\\hline 30 \text { October } & \text { Sold } 150 \text { units } \\\hline\end{array}$$ What would the cost of sales be as reported on the income statement for the year ending 31 December 2016 if the perpetual weighted-average costing method is used? (Round your intermediate calculations to two decimal places. )

• A)$29,960
• B)$12,840
• C)$18,720
• D)$17,120

---

Definitions:

Purely Competitive

A market structure characterized by an infinite number of small buyers and sellers where the product is a commodity, allowing no single participant to significantly influence price.

Resource Market

The marketplace where resources or inputs (such as labor, raw materials, and capital) are bought and sold for the purpose of producing goods and services.

Marginal Revenue Product

The additional revenue generated from employing one more unit of a resource, typically labor.

Marginal Resource Cost

The added expenditure for making one more unit of a product or service.