Metro Computer Company Had the Following Balances and Transactions During

question 84

Multiple Choice

Metro Computer Company had the following balances and transactions during 2014. $$\begin{array} { | l | l | } \hline \text { Beginning inventory } & 100 \text { units at } \$ 75 \\\hline \text { March } 10 & \text { Sold } 50 \text { units } \\\hline \text { June } 10 & \text { Purchased } 200 \text { units at } \$ 80 \\\hline \text { October 30 } & \text { Sold } 150 \text { units } \\\hline\end{array}$$
- What would the Cost of goods sold be as reported on the income statement at December 31,2014 if the perpetual First-In,First-Out costing method is used? (Answers are rounded to the nearest dollar.)

• A) $15,000
• B) $12,000
• C) $16,000
• D) $15,500

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Definitions:

Cost of Capital

The cost of funds used for financing a business, often considered as the required rate of return to make a capital budgeting project, such as building a new factory, worthwhile.

Net Present Value

A method used to evaluate the feasibility of a project or investment by calculating the difference between the present value of cash inflows and outflows over a period of time.

Feasible

Refers to an option or action that is possible or practicable within available resources and constraints.

Present Value

The present value of a sum of money or a series of cash flows expected in the future, determined using a particular rate of return.