Vargas Company Uses the Perpetual Inventory Method

question 26

Multiple Choice

Vargas Company uses the perpetual inventory method.Vargas purchased 400 units of inventory that cost $15.00 each.At a later date the company purchased an additional 800 units of inventory that cost $18.00 each.Vargas sold 500 units of inventory for $27.00.If Vargas uses a FIFO cost flow method,the amount of cost of goods sold appearing on the income statement will be:

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

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Definitions:

Unfamiliar Environment

A situation or setting that is not known or experienced before, potentially leading to uncertainty or discomfort.

Organizational Culture

The shared values, beliefs, norms, and practices that define a group or organization’s way of operating.

Effective Change

Involves the successful implementation of new ideas, behaviors, or processes in an organization, leading to measurable improvements.

Critical Few

A term referring to the small number of vital factors or key individuals that are considered most important in achieving a larger goal or performance target.