Lauer Corporation Uses the Periodic Inventory System and Has Provided

question 56

Multiple Choice

Lauer Corporation uses the periodic inventory system and has provided the following information about one of its laptop computers: During the year, Lauer sold 750 laptop computers. What was cost of goods sold using the FIFO cost flow assumption?

• A)$725,000.
• B)$740,000.
• C)$735,000.
• D)$720,000.

---

Definitions:

Paid-In Capital

Capital received from investors in exchange for stock, representing the funds that shareholders have invested in the company.

Treasury Stock

Shares that were once outstanding but have been bought back by the issuing company, reducing the amount of stock on the open market.

Balance Sheet

A financial statement summarizing a company's assets, liabilities, and shareholders' equity at a specific point in time.

Retained Earnings

The portion of net income left over for the business after it has paid out dividends to its shareholders.