Pearl Company has a perpetual inventory system.The company uses the FIFO method to assign costs to inventory and cost of goods sold.Consider the following information:

What amounts would be reported as cost of goods sold and ending inventory for April?
A) Cost of goods sold $6,250; Ending inventory $1,750
B) Cost of goods sold $7,550; Ending inventory $2,250
C) Cost of goods sold $5,500; Ending inventory $2,500
D) Cost of goods sold $6,000; Ending inventory $2,000

Question

Pearl Company has a perpetual inventory system.The company uses the FIFO method to assign costs to inventory and cost of goods sold.Consider the following information:

What amounts would be reported as cost of goods sold and ending inventory for April?
A) Cost of goods sold $6,250; Ending inventory $1,750 
B) Cost of goods sold $7,550; Ending inventory $2,250 
C) Cost of goods sold $5,500; Ending inventory $2,500 
D) Cost of goods sold $6,000; Ending inventory $2,000

Quizplus · Accepted Answer

The Answer of Pearl Company has a perpetual inventory system.The company uses the FIFO method to assign costs to inventory and cost of goods sold.Consider the following information:

What amounts would be reported as cost of goods sold and ending inventory for April?
A) Cost of goods sold $6,250; Ending inventory $1,750 
B) Cost of goods sold $7,550; Ending inventory $2,250 
C) Cost of goods sold $5,500; Ending inventory $2,500 
D) Cost of goods sold $6,000; Ending inventory $2,000

Pearl Company Has a Perpetual Inventory System