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:

Breadwinner-Homemaker

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A theoretical perspective in sociology that sees society as a complex system whose parts work together to promote solidarity and stability.

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Complex networks of biologically significant entities, encompassing ecosystems, organisms, and cellular and molecular processes.

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The tension or antagonism which exists in society due to competing socioeconomic interests and desires between people of different classes.