Use This Information to Answer the Following Question

question 5

Multiple Choice

Use this information to answer the following question.
-A periodic inventory system is used;ending inventory is 140 units.
What is cost of goods sold under FIFO?

• A)$1,760
• B)$3,160
• C)$2,160
• D)$4,160

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Definitions:

Replace Inventory

The process of replenishing stock to ensure sufficient levels of inventory are maintained for operations.

Acquire Inventory

The process of obtaining goods and materials for sale or use in production by a company.

Estimated Ending Inventory

An approximation of the value or quantity of inventory that a company expects to have at the end of a period, calculated using the cost of goods sold formula.

Gross Profit

The difference between revenue from sales and the cost of goods sold, before accounting for operating expenses.