Given the Following Information, Determine the Cost of Goods Sold

question 34

Multiple Choice

Given the following information, determine the cost of goods sold at December 31 using the LIFO 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)$284.70
• B)$332.10
• C)$281.25
• D)$290.70
• E)$297.00

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Definitions:

Mechanical Braking Efficiencies

The effectiveness and performance efficiency of a mechanical braking system in converting kinetic energy into heat energy to stop a vehicle.

Drum Brakes

A brake system in which a rotating drum fixed to the wheel assembly turns around stationary friction-faced shoes. Braking action is achieved when the shoes are forced into the drum inside diameter. The common foundation brake system used on trucks using S-cam actuation of the shoes.

S-cam Type Foundation Brakes

A type of drum brake system commonly used in heavy vehicles, where an S-shaped cam forces the brake shoes apart and against the drum to create friction and stop the vehicle.

Axle Spindle

A component of the wheel assembly that provides a mounting point for the wheel and its bearing, allowing the wheel to rotate freely around the axle.