A Company Had the Following Purchases and Sales During Its

question 47

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 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) $5,470.
• B) $8,670.
• C) $5,305.
• D) $5,130.
• E) $5,400.

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Definitions:

Conservation

In environmental science, it is the preservation and careful management of the environment and natural resources.

Concrete Operational

A stage in Piaget's theory of cognitive development, occurring roughly from ages 7 to 12, characterized by the development of logical thought about concrete objects but not yet abstract concepts.

Theory Of Mind

The ability to attribute mental states—beliefs, intents, desires, emotions, knowledge—to oneself and others.

Conventional Morality

A stage in moral development characterized by adherence to rules and standards of one's group or society.