Beech Soda, Inc On 14 January, Beech Soda, Inc

question 49

Multiple Choice

Beech Soda, Inc. uses a perpetual inventory system. The company's beginning inventory of a particular product and its purchases during the month of January were as follows:
$\begin{array} { | l | c | c | c | } \hline & \text { Quantity } & \text { Unit Cost (\$) } & \text { Total Cost (\$) } \\\hline \text { Beginning inventory (1 Jan) } & 16 & 10 & 160 \\\hline \text { Purchases (11 Jan.) } & 14 & 12 & 168 \\\hline \text { Purchase (20 Jan.) } & 23 & 15 & \underline { 345 } \\\hline \text { Total } & 53 & & 673 \\\hline\end{array}$
On 14 January, Beech Soda, Inc. sold 25 units of this product. The other 28 units remained in inventory at 31 January.


-Assuming that Beech Soda uses the FIFO flow assumption, the 28 units of this product in inventory at 31 January have a total cost of:

• A) $400.
• B) $395.
• C) $405.
• D) $410.

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Definitions:

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A root vegetable with a taste that is a mixture of cabbage and turnip, commonly used in cooking.

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A green vegetable with a large flowering head, stalk, and small associated leaves, often eaten for its nutritional qualities.

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The additional satisfaction or utility gained from consuming one more unit of a good or service, divided by its cost.

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