Santa Fe Tile Company Had the Following Inventory Purchases and Sales

question 64

Multiple Choice

Santa Fe Tile Company had the following inventory purchases and sales during the month of May. The company uses the periodic inventory method. If Santa Fe uses FIFO costing, how much was the Cost of goods sold for the month?

• A)$1,400
• B)$1,520
• C)$1,380
• D)$1,850

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Definitions:

Market Economy

An economic system in which supply and demand from consumers drive the production of goods and services.

Price Floor

Price floor is a government or group-imposed limit below which prices cannot fall, typically set to ensure producers can cover their costs.

Equilibrium Price

The price at which the quantity of a good or service demanded by consumers is equal to the quantity supplied by producers, resulting in market balance.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price in a specific period.