A Company Uses Perpetual Inventory in Connection with the Specific-Identification $$\begin{array} { | l | r | r | } \hline \text { Inventory } & 14,400 & \\\hline \text { Cost of goods sold } & & 14,400 \\\hline\end{array}$$

question 121

Multiple Choice

A company uses perpetual inventory in connection with the specific-identification method.The company purchased 30 industrial diamonds for $500 per unit.Later in the month,they purchased another 20 diamonds from another supplier for $480 per unit.On the last day of the month,they sold 18 diamonds to a customer at a price of $800 per unit.Of the 18 diamonds,3 came from the first batch and the remainder came from the second batch.
-Which of the following journal entries correctly records the Cost of goods sold?

• A) \[\begin{array} { | l | r | r | }
• \hline \text { Inventory } & 14,400 & \\
• \hline \text { Cost of goods sold } & & 14,400 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | c | r | r | }
• \hline \text { Sales revenue } & 14,400 & \\
• \hline \text { Inventory } & & 14,400 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | c | r | r | }
• \hline \text { Cost of goods sold } & 8,700 & \\
• \hline \text { Sales revenue } & & 8,700 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | l | r | r | }
• \hline \text { Cost of goods sold } & 8,700 & \\
• \hline \text { Inventory } & & 8,700 \\
• \hline
• \end{array}\]

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Definitions:

Collectivism

A cultural value that emphasizes the importance of groups and community over individual interests.

Values

Fundamental beliefs or standards that dictate an individual's behavior and decision-making, shaping their perception of right and wrong.

Incongruent Conflicts

Disputes arising from differences in goals, values, or interests between individuals or groups.

Achievement

The successful attainment of objectives or goals through effort, skill, or courage.