Lewis Company Had the Following Balances and Transactions During 2014

question 114

Multiple Choice

Lewis Company had the following balances and transactions during 2014: What would the Cost of Goods Sold be as reported on the income statement for the year ending December 31, 2014 if the perpetual weighted-average costing method is used? (Round your intermediate calculations to two decimal places)

• A)$8,160
• B)$20,400
• C)$16,240
• D)$12,000

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Definitions:

Savings

The portion of income not spent on consumption of goods and services, often put aside for future use or investment.

Disposable Income

Financial assets available to households for expenditure and savings after income taxes.

Inventory Investment

The net change in physical inventory levels for businesses over a certain period, indicating how much companies are spending to stock goods.

Inventory

The complete quantity of products and materials kept in inventory by a company, meant for sale or to be used in manufacturing.