Quan Uses a Periodic Inventory System -If Quan,Inc

question 127

Multiple Choice

Quan uses a periodic inventory system.The company had the following data for the month of April:
$$\begin{array}{llll}\text { April } 1 & \text { On hand, } 10 \text { units } @ \$ 2 \text { each } & \$ 20 \\19 & \text { Purchased } 90 \text { units } @ \$ 3 \text { each } & 270 \\& \text { Cost of goods avail able for sale } & \$ 290\\30 &\text { On hand, } 20 \text { units }\end{array}$$

-If Quan,Inc.uses the FIFO method,how much is cost of goods sold for April?

• A)$230
• B)$232
• C)$240
• D)$250

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Definitions:

Return on Investment

A performance measure used to evaluate the efficiency or profitability of an investment or compare the efficiency of a number of different investments.

Total Liabilities

The sum of all debts and financial obligations a company owes to outside parties.

Total Assets

The sum of all resources owned by a company or an individual, valued in monetary terms, which includes tangible and intangible items.

Net Income

The total earnings of a company after subtracting all expenses and taxes from the total revenue.