Given the Following Data, What Is Cost of Goods Sold

question 59

Multiple Choice

Given the following data, what is cost of goods sold as determined under the FIFO method?

• A) $6,400
• B) $5,250
• C) $4,600
• D) $7,000

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Definitions:

Cash Operating Expenses

Expenses that a company pays out in cash during the operating cycle, excluding non-cash expenses like depreciation.

One-Time Expense

An uncommon or non-recurring charge that companies incur, which does not reflect regular operating activities.

Straight-Line Depreciation

A technique for determining an asset's depreciation by uniformly distributing its cost throughout its lifespan.

Operating Cash Inflow

Cash received by a company during its normal business operations.