Santa Fe Tile Company Had the Following Inventory Purchases and Sales

question 89

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 average-cost, how much was the Cost of goods sold for the month?

• A)$1,400
• B)$1,850
• C)$1,380
• D)$1,615

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Definitions:

Analyze Transactions

The process of examining financial transactions to understand their nature, how they affect the accounts, and how they should be recorded in the accounting system.

Correcting Entries

Journal entries made to amend previously recorded transactions or entries that were made incorrectly.

Balance Sheet Account

A financial statement line item that represents the assets, liabilities, and shareholders' equity at a specific point in time.

Income Statement Account

An account found on the income statement that records business transactions affecting the company's revenue, expenses, gains, and losses.