Given the Following Information, Determine the Cost of Goods Sold

question 126

Multiple Choice

Given the following information, determine the cost of goods sold for December 31 using the FIFO periodic inventory method: December 2: 5 units were purchased at $7 per unit.
December 9: 10 units were purchased at $9.40 per unit.
December 11: 12 units were sold at $35 per unit.
December 15: 20 units were purchased at $10.15 per unit.
December 22: 18 units were sold at $35 per unit.

• A)$282.15
• B)$332.10
• C)$281.25
• D)$297.00
• E)$284.70

Understand the effects of buying and selling portions of investments on the investment account balance.

Understand and apply the equity method for accounting for investments.

Prepare journal entries related to equity method investments including initial recognition, recognition of investee's net income or loss, and dividends received.

Calculate and defer gross profit on inter-entity inventory sales and recognize it appropriately in subsequent periods.

---

Definitions:

WordArt Shadow

A visual effect in graphic design that adds a shadow behind text to create the illusion of depth or emphasis.

Text Direction

The direction in which text is displayed or written, which can be left-to-right, right-to-left, or top-to-bottom, depending on the language and context.

SmartArt Shape

A graphical tool within Microsoft Office programs designed to help create visual representations of information, such as diagrams and charts.

Picture Content Control

A feature in document creation software that allows users to insert and manage images within a document.