A Company Had the Following Purchases and Sales During Its

question 229

Multiple Choice

A company had the following purchases and sales during its first year of operations: $$\begin{array} { | l | l | l | } \hline & \text { Purchases } & \text { Sal es } \\\hline \text { January. } & 10 \text { units at } \$ 120 & 6 \text { units } \\\hline \text { February. } & 20 \text { units at } \$ 125 & 5 \text { units } \\\hline \text { May. } & 15 \text { units at \$130 } & 9 \text { units } \\\hline \text { September: } & 12 \text { units at \$135 } & 8 \text { units } \\\hline \text { November: } & 10 \text { units at } \$ 140 & 13 \text { units } \\\hline\end{array}$$ On December 31, there were 26 units remaining in ending inventory.
-Using the Perpetual FIFO 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) $5,400.
• B) $3,540.
• C) $5,130.
• D) $8,670.
• E) $3,270.

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Definitions:

Cent

A unit of currency equaling one-hundredth of various currencies, including the US dollar and the Euro.

Significant Figures

The digits in a number that are meaningful in terms of accuracy or precision, typically used in scientific measurements.

Percent

A ratio or fraction out of 100 used to express quantities in fractions of a hundred.

Accurate

A term describing information or measurements that are correct, precise, and free of errors.