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Tehran Ltd 120\quad 120 Units @$3.14@ \$ 3.14 Per Unit
March 1 \quad

Question 66

Multiple Choice

Tehran Ltd. uses FIFO to cost its inventory. The following information is available for Tehran's inventory of product # 101: Beginning inventory: 120\quad 120 units @$3.14@ \$ 3.14 per unit
March 1: \quad \quad \quad \quad Purchase of 250 units @ $3.50\$3.50 per unit
April 10: \quad \quad \quad \quad Sale of 100 units @ $5.10\$ 5.10 per unit Assuming Tehran uses the perpetual inventory system, the second entry to account for the April 10 sale is


A) debit Cost of Goods Sold and credit Inventory, $350.
B) debit Cost of Goods Sold and credit Purchases, $350.
C) debit Cost of Goods Sold and credit Inventory, $314.
D) debit Cost of Goods Sold and credit Purchases, $314.

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