A Company Had the Following Purchases and Sales During Its

question 63

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 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) $5,470.
• B) $3,200.
• C) $5,130.
• D) $5,400.
• E) $8,670.

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Definitions:

Sensory Receptors

Specialized cells or nerve endings that detect and respond to stimuli, such as light, sound, touch, and temperature, facilitating perception.

Perception

The cognitive process of interpreting and making sense of sensory information to understand the environment around us.

Conscious Awareness

The state or quality of being aware of an external object or something within oneself.

Mechanoreceptors

Mechanoreceptors are sensory receptors that respond to mechanical pressure or distortion, involved in processes like touch, hearing, and balance.