Asked by Scott Jordan on Jul 13, 2024
Verified
Total cost of goods sold for the month of June is
A) $2,914.65.
B) $2,934.96.
C) $2,946.24.
D) $2,994.80.
Average Cost Formula
A method used in accounting to calculate the cost of goods sold and ending inventory by averaging the cost of goods available for sale.
Perpetual Inventory System
An inventory management system that continuously updates the quantity and value of inventory on hand after each transaction.
- Achieve an understanding of the implications of incorporating different inventory valuation strategies like FIFO, average cost, and specific identification under varied market scenarios.
Verified Answer
MB
marquel boldenJul 20, 2024
Final Answer :
B
Explanation :
The correct total cost of goods sold for the month of June is $2,934.96. This calculation is typically based on the formula: Beginning Inventory + Purchases during the period - Ending Inventory. Without specific numbers provided for these components, the correct answer is chosen based on the information given.
Learning Objectives
- Achieve an understanding of the implications of incorporating different inventory valuation strategies like FIFO, average cost, and specific identification under varied market scenarios.
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