A Company That Uses the Perpetual Inventory System Sold Goods

question 71

Multiple Choice

A company that uses the perpetual inventory system sold goods for $1,000 to a customer on account. The company had purchased the inventory for $400. Which of the following journal entries correctly records the cost of goods sold?

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Definitions:

Marginal Cost

Marginal cost is the cost of producing one more unit of a good or service, which can vary depending on the level of production.

Activity

The engagement in tasks or actions, typically referring to some form of productive work or leisure actions.

Scarce Resources

Resources that are limited in supply and cannot satisfy all human wants and needs.

Standard Of Living

A level of material comfort in terms of goods and services available to someone or some group.