A Company Had the Following Purchases and Sales During Its

question 71

Multiple Choice

A company had the following purchases and sales during its first year of operations: On December 31,there were 26 units remaining in ending inventory.
-Using the periodic FIFO inventory costing method,what is the value of cost of goods sold? (Assume all sales were made on the last day of the month.)

• A)$8,670.
• B)$3,540.
• C)$5,400.
• D)$5,130.
• E)$3,270.

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Definitions:

Indifferent

A state of having no preference between two or more options, showing neither favor nor disfavor.

Variable Costs

Costs that vary directly with the level of production or sales volume.

Average Costs

The total costs (fixed and variable) of production divided by the total quantity of output, indicating the cost of producing each unit.

Fixed Costs

Costs that do not vary with the level of output or sales, such as rent, salaries, and loan payments.