A Company Had the Following Purchases and Sales During Its

question 157

Multiple Choice

A company had the following purchases and sales during its first month of operations: $$\begin{array} { | l | l | } \hline \text { January } 1 & \text { Purchased } 10 \text { units at } \$ 4.00 \text { per unit } \\\hline \text { January } 9 & \text { Sold } 6 \text { units at } \$ 12.00 \text { per unit } \\\hline \text { January } 17 & \text { Purchased 8 units at } \$ 5.50 \text { per unit } \\\hline \text { January } 27 & \text { Sold } 7 \text { units at } \$ 12.00 \text { per unit } \\\hline\end{array}$$ Using the Perpetual weighted average method, what is the value of cost of goods sold? (Round weighted average costs per unit to 2 decimal places.)

• A) $23.35.
• B) $24.00.
• C) $40.00.
• D) $59.00.
• E) $25.00.

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Definitions:

Intended Beneficiaries

Individuals or entities who, although not party to a contract, are intended by the contracting parties to benefit from the contract's performance.

Privity of Contracts

A doctrine in contract law that states that contracts are binding only upon the parties signing the agreement, and no third party can enforce or be obliged by the contract.

Legal Doctrine

A principle or framework of principles established through precedent in case law which guides judicial decision-making.

Breaches

Instances where a rule, law, or agreement is violated or broken.