A Company Has Just Completed Its Second Year of Operations

A company has just completed its second year of operations. It will use the FIFO, LCM retail method for external reporting. The following information is available $\begin{array} { | l | l | l | } \hline & \text { Cost } & \text { Retail } \\\hline \text { Beginning inventory, January 1, 2002 } & \$ 7,200 & \$ 12,000 \\\hline \text { Sales revenues } & 35,200 & \\\hline \text { Purchases } & 31,200 & 48,000 \\\hline \text { Net markdowns } & 12,800 & \\\hline \text { Net mark-ups } & 4,000 & \\\hline\end{array}$
The 2002 cost of goods sold will be:

A) $25,787
B) $27,663
C) $25,600
D) $28,333