Quan Uses a Periodic Inventory System

question 84

Multiple Choice

Quan uses a periodic inventory system.At the end of April,Quan had 20 units on hand. If Quan,Inc.uses FIFO inventory costing,how much is cost of goods sold for April?

• A)$230
• B)$232
• C)$240
• D)$250

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Definitions:

Allocative Efficiency

An economic state where resources are allocated in a way that maximizes the net benefit to society.

ATC

Another term for Average Total Cost, it represents the per unit cost of production, calculated by dividing total production cost by the quantity of goods produced.

Profit-Maximizing

A firm's objective of adjusting outputs and pricing to achieve the highest possible profit.

Demand Schedule

A table that shows the quantity of a good or service that consumers are willing to buy at each price point.