A Company Uses Periodic Inventory in Connection with FIFO Costing

question 16

Multiple Choice

A company uses periodic inventory in connection with FIFO costing. The company began the year with zero inventory balance. They had the following transactions during the year: At the end of the year, they counted the inventory and found 55 units remaining. How much was the Cost of goods sold for the year? (Please round to the nearest whole dollar.)

• A)$541
• B)$582
• C)$626
• D)$680

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Definitions:

Testing Supplies

Materials or equipment used to conduct tests and evaluations during various stages of production or research.

External Failure Cost

Costs incurred when products or services fail to meet quality standards after being delivered to the customer, including returns, repairs, and warranties.

Quality Cost Report

A document or analysis that outlines the costs associated with ensuring the quality of products or services, including prevention, appraisal, and failure costs.

Warranty Repairs

Services offered to repair or replace products free of charge within a specified period after the sale, under the terms of a warranty.