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:

Efficient Production Planning

A process that ensures resources are used effectively to meet production goals, minimizing waste and costs while maximizing output.

Financial Ratios

Quantitative measures derived from financial statements that are used to evaluate a company's financial health, performance, and viability.

Breakeven Quantity

The number of units that must be sold at a given price to cover all associated costs, resulting in neither profit nor loss.

External Benchmarking

The process of comparing one's business processes and performance metrics to industry bests or best practices from other companies.