Vargas Company uses the perpetual inventory method. Vargas purchased 2100 units of inventory that cost $22.00 each. At a later date the company purchased an additional 2500 units of inventory that cost $23.00 each. Vargas sold 2200 units of inventory for $26.00. If Vargas uses a FIFO cost flow method, the amount of cost of goods sold appearing on the income statement will be:
A. $46,200.
B. $6600.
C. $8700.
D. $48,500.
Answer: D
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