Ace Systems, Inc On 28 January, Ace Systems Sells 18 Units (10 Units

question 105

Multiple Choice

Ace Systems, 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:
$\begin{array}{lcccc} & \text { Quantity } &\text { Unit Cost } & \text { Total Cost } \\\text { Beginning inventory (1 Jan.) } & 10&\$ 27.50 & \$ 275 \\\text { Purchase (15 Jan.) } & 15 & \$ 28.00 & \$ 420 \\\text { Purchase (23 Jan.) } & \underline{5} & \$ 29.00 & \$ 145 \\\quad \text { Total } & \underline{30}&& \underline{\$ 840}\end{array}$
On 28 January, Ace Systems sells 18 units (10 units from beginning inventory, 4 units from 15 Jan purchase, and 4 units from 23 Jan purchase) of this product. The other 12 units remain in inventory at 31 January.


-Assuming that Ace Systems uses the FIFO flow assumption, the cost of goods sold on 28 January is:

• A) $509.
• B) $341.
• C) $499.
• D) Some other amount.

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Definitions:

Hours Worked

The total amount of time an individual spends performing tasks or activities related to employment within a given period.

Statistics Students

Individuals engaged in the study and analysis of data collection, interpretation, and presentation methods.

Frequency Distribution

A summary of how often each value in a set of data occurs, often displayed in a table or graphically as a histogram.

Relative Frequency

The proportion of times a value occurs in a data set to the total number of data points.