A Company Purchased Inventory for $800 Per Unit

question 94

Multiple Choice

A company purchased inventory for $800 per unit. The inventory was marked up to sell for $1,000 per unit. The entries to record the sale for cash and the cost of a unit of inventory would include debits to which of the following accounts?

• A)Sales, $1,000; Inventory, $800
• B)Cash, $1,000; Cost of Goods Sold, $800
• C)Cash, $800; Cost of Goods Sold, $1,000
• D)Sales, $800; Inventory, $800

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Definitions:

Core American Values

Fundamental beliefs and principles that are widely held and shared among the American population, such as freedom, equality, and democracy.

Gross Profit

Income after deducting only the cost of goods sold from revenue, indicating the efficiency of a company's production process.

Manufactured Units

Items or products that have been produced or fabricated in a manufacturing process.

Sold Units

The quantity of product units sold within a specific time period.