A Company Purchased 100 Units for $20 Each on January

question 65

Multiple Choice

A company purchased 100 units for $20 each on January 31.It purchased 100 units for $30 on February 28.It sold 150 units for $45 each from March 1 through December 31.If the company uses the Last-In,First-Out inventory costing method,what is the amount of Cost of goods sold on the December 31 income statement?

• A) $4,000
• B) $3,750
• C) $6,750
• D) $3,500

---

Definitions:

Controlling Investor

An investor or entity that holds a significant amount of voting stock in a company, allowing them to influence or control management decisions.

Long-Term Investment

Investments that a company or individual holds for more than one year, typically including stocks, bonds, or real estate.

Parent

A company that holds a controlling interest in another company, making the other company its subsidiary.

Par Value

Par value is the nominal or face value of a bond, share of stock, or coupon as stated by the issuer, which may differ significantly from its market value.