Martin Sales Had a Beginning Inventory Balance of $120 Made

question 89

Multiple Choice

Martin Sales had a Beginning inventory balance of $120 made up of 10 units purchased for $12.00 per unit.Early in the month,they purchased 16 units at $10.00 per unit.Later that month,they sold 15 units.Martin uses a perpetual inventory system,and applies the average-costing method.
-How much is Cost of goods sold for the month? (When calculating average cost,please round to the nearest cent.When calculating Cost of goods sold and Ending inventory,please round to the nearest whole dollar.)

• A) $162
• B) $170
• C) $158
• D) $168

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Definitions:

Average Operating Assets

The average value over a period of time of assets utilized in the daily operations of a business, crucial for assessing performance.

Net Operating Income

Profits derived from a company's everyday business operations, excluding taxes and interest charges.

Variable Cost Per Unit

The expense associated with producing one additional unit of product, which changes with the level of output.

Annual Fixed Costs

Costs that do not vary with the level of production or sales volume within a certain range and time period, such as rent, salaries, and insurance.