Diligent Ltd Had 5 Units of the Commodity Algo on Hand

question 9

Multiple Choice

Diligent Ltd had 5 units of the commodity Algo on hand at 1 September 2016.The following purchases and sales were made during September:
-What was the value of cost of goods sold of Algo,using the LIFO assumption in a perpetual inventory system?

• A) $2600
• B) $2700
• C) $2720
• D) $1400

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Definitions:

Factor Prices

The costs of the inputs that are used in the production of goods or services.

Production Function

A mathematical relationship describing the maximum output possible from a given set of inputs.

Units Of Output

The total quantity of goods or services produced by a company or industry in a specific period.

Junior Partner

A member of a partnership or firm who has less responsibility and usually a smaller share of the business than senior partners.