If BetterBuy Uses the Specific Identification Method,its Cost of Goods

question 28

Multiple Choice

If BetterBuy uses the specific identification method,its cost of goods sold will be:

• A)$3,000
• B)$2,950
• C)$3,200
• D)$3,033

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Definitions:

Inventory Period

The average time it takes for a company to turn its inventory into sales, reflecting the efficiency of inventory management.

COGS

Cost of Goods Sold, representing the direct costs attributable to the production of the goods sold by a company.

Operating Cycle

The duration of time from the acquisition of goods for inventory to the sale of the goods and the collection of payment.

Inventory Turnover

A measure of how quickly a company sells and replaces its stock of goods during a certain period, indicating efficiency in managing inventory.