Use This Inventory Information for the Month of May to Answer

question 27

Multiple Choice

Use this inventory information for the month of May to answer the following question. $\begin{array}{rlll}\text { May } &1& \text { Beginning inventory } & 20 \text { units @ } \$ 76 \\&7 & \text { Purchase } & 70 \text { units @ } \$ 80 \\&18 & \text { Sale } & 25 \text { units } \\&22 & \text { Purchase } & 10 \text { units @ } \$ 88 \\&29 & \text { Sale } & 40 \text { units }\end{array}$
Assuming that a periodic inventory system is used,what is cost of goods sold on a FIFO basis?

• A) $2,880
• B) $5,120
• C) $5,200
• D) $2,800

---

Definitions:

Equitable Remedy

A legal remedy, usually issued by a court, which provides a solution deemed fair and just in situations where monetary damages are not sufficient.

Misrepresented

The act of presenting facts or information in a false or misleading way.

Breach Of Contract

The violation of a contractual obligation by failing to perform one's own promise, by hindering another party's performance, or by making it impossible.

Rectification

A correction, by the court, of the wording of a mistake in a contract.