On June 1,beginning Inventory Consists of Ten Items That Cost

question 219

Multiple Choice

On June 1,beginning inventory consists of ten items that cost $100 each.On June 8,ten more items are purchased at $120 each.On June 12,fifteen items are sold for $200 each.On June 28,ten items are purchased at $130 each.Using periodic FIFO,cost of goods sold for the month ended June 30 equals ________.

• A)$1,500
• B)$1,600
• C)$1,800
• D)$3,000

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Definitions:

Owner

An individual or entity that holds the legal right or title to something, such as a business or property.

Going Concern Assumption

An accounting principle that assumes a company will continue to operate and remain solvent for the foreseeable future, affecting its financial reporting.

Operating Indefinitely

A business condition where it is expected that the company will continue its operations without a foreseeable end.

Future Benefits

Expected economic advantages gained from current investments, actions, or decisions.