Starlight Company Has Inventory of 8 Units at a Cost

question 98

Multiple Choice

Starlight Company has inventory of 8 units at a cost of $200 each on October 1.On October 2,it purchased 20 units at $205 each.11 units are sold on October 4.Using the LIFO perpetual inventory method,what amount will be reported in cost of goods sold for the 11 units that were sold?

• A)$2,239.
• B)$2,255.
• C)$2,200.
• D)$2,228.
• E)$2,215.

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Definitions:

Average Total Cost

The total cost of producing a particular quantity of output divided by the quantity of output produced, encompassing both fixed and variable costs.

Input Prices

The cost of resources used in the production of goods and services.

Total Costs

All costs involved in manufacturing goods or providing services, incorporating both stable and changeable expenses.

Economies of Scale

Economies of scale refer to the benefits companies achieve through large-scale production, which typically results in a reduction of the cost per unit as production volumes increase.