A Company That Uses the Perpetual Inventory System Purchased 500

question 42

Multiple Choice

A company that uses the perpetual inventory system purchased 500 pallets of industrial soap for $9,000 and paid $790 for the freight-in.The company sold the whole lot to a supermarket chain for $13,000 on account.The company uses the specific-identification method of inventory costing.Which of the following entries correctly records the cost of goods sold?

---

Definitions:

Hawthorne Studies

A series of research activities conducted in the 1920s and 1930s that explored how different working conditions affected worker productivity, leading to insights about the social and emotional aspects of the workplace.

Human Relations Movement

An early management theory focusing on the social aspects of the workplace and employee welfare.

Employable System

A system or structure designed to support and enhance the employability of individuals, often through training and education.

Interdependent Characteristics

Traits or features that rely on each other to function effectively, often seen in team dynamics or systems thinking.