Vargas Company Uses the Perpetual Inventory System and the FIFO

question 39

Multiple Choice

Vargas Company uses the perpetual inventory system and the FIFO cost flow method.During the current year,Vargas purchased 400 units of inventory that cost $15.00 each.At a later date during the year,the company purchased an additional 800 units of inventory that cost $18.00 each.Vargas sold 500 units of inventory for $27.00.What is the amount of cost of goods sold that will appear on the current year's income statement?

• A)$7,800
• B)$6,000
• C)$4,500
• D)$5,700

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