A Company Purchased 100 Units for $20 Each on January

question 85

Multiple Choice

A company purchased 100 units for $20 each on January 31.It purchased 100 units for $30 on February 28.It sold 150 units for $45 each from March 1 through December 31.If the company uses the average cost inventory costing method,what is the amount of Cost of goods sold on the December 31 income statement?

• A) $6,750
• B) $3,750
• C) $4,000
• D) $3,500

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Definitions:

Mean Age

The average age of all individuals in a particular group or population, calculated by summing their ages and dividing by the number of individuals.

Finite Population Correction Factor

A statistical adjustment applied when sampling without replacement from a finite population to improve the accuracy of estimations and reduce sampling error.

Mean Salary

The average wage or salary calculated by summing all salaries and dividing by the number of salaries.

Normal Distribution

This refers to a probability distribution where symmetry around the mean indicates higher frequency of data points near the mean than those far from it.