Tetra Co. uses the perpetual inventory system and a FIFO cost flow method. On January 1, the company purchased 2100 units of inventory that cost $2.50 each. On January 12, the company purchased an additional 3100 units of inventory at a cost of $2.35 each. On January 20, Tetra Company sold 4100 units of inventory. Which of the following entries would be required to recognize the cost of goods sold on that date?
A.
| Cost of goods sold | 9950? | |
| Inventory | 9950? |
B.
| Inventory | 10,050? | |
| Cost of goods sold | 10,050? |
C.
| Inventory | 9950? | |
| Cost of goods sold | 9950? |
D.
| Cost of goods sold | 10,050? | |
| Inventory | 10,050? |
Answer: A
Business
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