Tetra Company purchased 3500 units of inventory that cost $9.50 each on January 1, Year 1. An additional 4500 units of inventory were purchased on January 12, Year 1 at a cost of $5.85 each. Tetra Company sold 5500 units of inventory on January 20, Year 1. Assuming that Tetra Co. uses the perpetual inventory method and a FIFO cost flow method, how would the entry to recognize the cost of goods sold affect the financial statements?
A. Increase inventory and increase cost of goods sold by $44,950
B. Decrease cost of goods sold and increase inventory by $45,050
C. Increase cost of goods sold and decrease inventory by 44,950
D. Increase inventory and increase cost of goods sold by 45,050
Answer: C
You might also like to view...
The use of aggressive personal selling and trade advertising by a manufacturer to convince a wholesaler or a retailer to carry and sell particular merchandise is known as a__________strategy
Fill in the blanks with correct word.
__________ creditors must file a __________ stating the amount of their claim in a form provided by the bankruptcy court within time periods established by the jurisdiction in which the case if filed
a. Unsecured, notice b. Unsecured, proof of claim c. Unsecured, automatic stay d. Secured, reaffirmation agreement
Authentication makes use of the _________ message authentication code
What will be an ideal response?
The term dumpster diving refers to the task of modifying the operating system to remove manufacturer or carrier restrictions in order to run applications other than those from the official store
Indicate whether the statement is true or false