Use This Inventory Information for the Month of March to Answer

question 37

Multiple Choice

Use this inventory information for the month of March to answer the following question. Assuming that a periodic inventory system is used,what is cost of goods sold on a FIFO basis?

• A)$2,160
• B)$3,780
• C)$3,861
• D)$5,940

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Definitions:

Negligence

The failure to exercise the standard of care that a reasonably prudent person would have exercised in a similar situation, leading to potential harm or loss.

Sole Proprietorship

A business structure where a single individual owns, operates, and is responsible for all aspects of the business.

Limited Liability

A legal structure that limits the financial responsibility of an organization's owners or shareholders to their investment in the company.

Corporation

A legal entity separate from its owners, with rights and liabilities, and the ability to enter into contracts, sue, and be sued.