A Company That Uses the Perpetual Inventory System Purchased 500

question 12

Multiple Choice

A company that uses the perpetual inventory system purchased 500 pallets of industrial soap for $7,000 and paid $750 for the freight-in. The company sold the whole lot to a supermarket chain for $13,000 on account. The company uses the specific-identification method of inventory costing. Which of the following entries correctly records the cost of goods sold?

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Definitions:

Mitochondria

Mitochondria are membrane-bound cell organelles responsible for generating most of the chemical energy needed to power the cell's biochemical reactions.

Plasma Membrane

The lipid bilayer that encloses the cytoplasm of a cell, regulating the passage of substances in and out of the cell.

Cytoplasm

The jelly-like substance within a cell enclosed by the cell membrane, excluding the nucleus, containing organelles and the site of most cellular activities.

Lactate

A compound produced in the body during the anaerobic conversion of glucose to energy, often associated with muscle fatigue.