Lewis Company Had the Following Balances and Transactions During 2016

question 61

Multiple Choice

Lewis Company had the following balances and transactions during 2016:
$$\begin{array} { | l | l | } \hline \text { Beginning inventory } & 140 \text { units at } \$ 84 \\\hline 10 \text { March } & \text { Sold } 70 \text { units } \\\hline 10 \text { June } & \text { Purchased } 280 \text { units at } \$ 86 \\\hline 30 \text { October } & \text { Sold } 150 \text { units } \\\hline\end{array}$$
What would the cost of sales be as reported on the income statement for the year ending 31 December 2016 if the perpetual weighted-average costing method is used? (Round your intermediate calculations to two decimal places.)

• A) $29,960
• B) $12,840
• C) $18,720
• D) $17,120

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Definitions:

Degrees of Freedom

The number of independent pieces of information available to estimate another piece of information or the parameter in a model.

Number

An arithmetic value that represents a particular quantity and is used in counting and making calculations.

Degrees of Freedom

The number of independent values or quantities which can be assigned to a statistical distribution or to a mechanism, minus the number of parameters that constrain these values.

Student t Distribution

A probability distribution that is used to estimate population parameters when the sample size is small and the population variance is unknown.