Chase CoUses the Perpetual Inventory Method

question 38

Multiple Choice

Chase Co.uses the perpetual inventory method.The inventory records for Chase reflected the following information:

-Assuming Chase uses a FIFO cost flow method,what is the cost of goods sold for the sales transaction on January 31?

• A)$1,020
• B)$1,005
• C)$1,045
• D)$340

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Definitions:

Mixing Department

A specific section in a manufacturing plant where materials are combined to produce a mixture or compound as part of the production process.

Conversion Costs

The combined costs of direct labor and manufacturing overhead necessary to convert raw materials into finished goods.

Weighted-Average Method

An inventory costing method that calculates the cost of goods sold and ending inventory value based on the average cost of all units available for sale during the period.

Materials Cost

The cost of the raw materials used in the production of goods.