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newconnect.meducation.conm 1656375 17358s0 advancedtal id-4207 ahoo Appla Cloud

ID: 2589155 • Letter: N

Question

newconnect.meducation.conm 1656375 17358s0 advancedtal id-4207 ahoo Appla Cloud Google Cloud Googlexcpedia Facebook Gitation Birg sosUinvestment sit Gideos Company Uses The Alowance Method Of -201 TFA Prinoipies of Accourting!-South 1 Exam Help Save&Exit; Su A company had the following purchases and sales during its first year of operasions 29 Purchases Sales January: 10 units at $120 units Fobruary: 20 units at $125 5 units 15 units at $130 9 units September: 12 units at $135 8 units Novenber: 10 units at $140 13 there were 26 units remaining in ending inventory Using the Perpetual FIFO inventory valuation method, what is On December 31, the value of cost of goods sold? (Assume all sales were made on the last day of the month) Multiple Choice $5130 2 5

Explanation / Answer

4 units at 120 = 480

1 unit at 125 = 125

10 units at 125 = 1,250

15 units at 130 = 1,950

2 units at 125 = 250

15 units at 130 = 1,950

12 units at 135 = 1,620

2 units at 125 = 250

11 units at 130 = 1,430

4 units at 130 = 520

12 units at 135 = 1,620

10 units at 140 = 1,400

Cost of goods sold = 720 + 480 + 125 + 1,125 + 1,000 + 250 + 1,430 = 5,130

Month Purchases Sales Ending inventory January 10 units at 120 = 1,200 6 units at 120 = 720 4 units at 120 = 480 February 20 units at 125 = 2,500

4 units at 120 = 480

1 unit at 125 = 125

19 units at 125 = 2,375 May 15 units at 130 = 1,950 9 units at 125 = 1,125

10 units at 125 = 1,250

15 units at 130 = 1,950

September 12 units at 135 = 1,620 8 units at 125 = 1,000

2 units at 125 = 250

15 units at 130 = 1,950

12 units at 135 = 1,620

November 10 units at 140 = 1,400

2 units at 125 = 250

11 units at 130 = 1,430

4 units at 130 = 520

12 units at 135 = 1,620

10 units at 140 = 1,400