QUESTION 46 Kara Company uses a periodic inventory system. Kara sold 420 coats i

Question

QUESTION 46 Kara Company uses a periodic inventory system. Kara sold 420 coats in 2012 for $500 each. Other data fo Merchandise inventory and purchases: (coats inventory) Jan Balance 300 coats@ S 70.00 March 6 Purchased 200 coats @S 80.00 July 15 Purchased 300 coats@$ 90.00 Oct. 23 Purchased 100 coats@$100.00 s 21,000 16,000 27,000 10,000 AVAILABLE: 900 coats $74,000 Cost of Goods Sold under the FIFO method is: O $38,600. $35,400. $43,400 none of the above Click Save and Submit to save and submit. Click Save All Answers to save all answers. F2 F4 H8B F5 4

Explanation / Answer

46 Cost of goods sold = (300*70)+(120*80)= $30600 47 Cost of goods sold = (100*100)+(300*90)+(20*80)= $38600 Gross margin = (420*500)-38600= $171400

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