A Company Had the Following Purchases and Sales During Its

question 132

Multiple Choice

A company had the following purchases and sales during its first year of operations:
$$\begin{array} { | l | l | l | } \hline & \text { Purchases } & \text { Sales } \\\hline \text { January: } & 10 \text { units at } \$ 120 & 6 \text { units } \\\hline \text { February: } & 20 \text { units at } \$ 125 & 5 \text { units } \\\hline \text { May: } & 15 \text { units at } \$ 130 & 9 \text { units } \\\hline \text { September: } & 12 \text { units at } \$ 135 & 8 \text { units } \\\hline \text { November: } & 10 \text { units at } \$ 140 & 13 \text { units } \\\hline\end{array}$$
On December 31,there were 26 units remaining in ending inventory
-Using the Periodic LIFO inventory valuation 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) $5,400.
• C) $5,470.
• D) $3,200.
• E) $5,130.

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Definitions:

Average Accounts Receivables

The average amount of money owed to a company by its customers for goods or services delivered on credit over a specific period.