Adam IncUses a Perpetual Inventory System and Has the Following Data

question 13

Multiple Choice

Adam Inc.uses a perpetual inventory system and has the following data for January:
$$\begin{array} { r l r } \text { Jan. } 1 & \text { On hand, } 10 \text { units } @ \$ 2 \text { each } & \$ 20 \\4 & \text { Sold } 8 \text { units } @ \$ 10 \text { each } & 80 \\22 & \text { Purchased } 50 \text { units } @ \$ 4 \text { each } & 200 \\26 & \text { Sold } 48 \text { units } @ \$ 10 \text { each } & 480\end{array}$$
- If Adam uses the FIFO method,how much is cost of goods sold for the month of January?

• A)$204
• B)$208
• C)$212
• D)$560

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Definitions:

Jaundice

A yellowish discoloration of the sclera and skin due to the presence of bile pigments in the blood.

Opaqueness

The quality of being difficult to see through or understand, often referring to materials that light cannot pass through or to information that is not transparent.

Decant

The process of gently pouring a liquid from one container to another, typically to separate it from settled sediment.

Clarity

The quality of being coherent and intelligible, ensuring easy understanding.