McCarthy Company Has Inventory of 8 Units at a Cost

question 38

Multiple Choice

McCarthy Company has inventory of 8 units at a cost of $200 each on October 1. On October 2, it purchased 20 units at $205 each. 11 units are sold on October 4.
- Using the FIFO perpetual inventory method, what amount will be reported as cost of goods sold for the 11 units that were sold?

• A) $2,239.
• B) $2,228.
• C) $2,255.
• D) $2,215.
• E) $2,200.

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Definitions:

Community Sharing

The practice of sharing resources, responsibilities, and benefits equally among members of a community.

Authority Ranking

A social structure where individuals are ranked in a linear order, with each person having clear powers over those below and obligations to those above.

Status Differences

The disparities or variations in social standing, prestige, or respect among individuals or groups in a social hierarchy.

Community Sharing

A form of resource distribution and social organization where members of a community share goods and services freely or according to need, without a central market system.