Use This Information to Answer the Following Question Assuming That the Specific Identification Method Is Used and That

question 112

Multiple Choice

Use this information to answer the following question. $\begin{array}{llll}\text { Jan. } & 1 & \text { Inventory } &15 \text { units @ } \$4.00 \\& 8 & \text { Purchase } & 60 \text { units } @ \$ 4.40\\&17 & \text { Purchase } & 30 \text { units } @ \$ 4.20 \\&25 & \text { Purchase } & 45 \text { units @ } \$ 8.40 \\&&\text { Total sales }& 100 \text { units }\end{array}$

Assuming that the specific identification method is used and that ending inventory consists of 15 units from each of the three purchases and five units from the January 1 inventory,cost of goods sold is

• A) $221.
• B) $418.
• C) $338.
• D) $445.

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Definitions:

Average Total Cost

Refers to the sum of all production costs divided by the total output produced, indicating the cost per unit of producing a good or service.

Cakes

Baked desserts that are typically sweet and made from ingredients such as flour, sugar, and eggs.

Marginal Cost Curve

A graphical representation showing how the cost to produce one additional unit of a good changes as more of that good is produced.

Average Variable Cost Curve

A graphical representation showing how the average variable cost of production changes as the quantity of output changes.