Chase Co. uses the perpetual inventory method. The inventory records for Chase reflected the following Assuming Chase uses a FIFO cost flow method, the cost of goods sold for the sales transaction on January 31 is:
A) $1,020.
B) $1,005.
C) $1,045.
D) $340.

Question

Chase Co. uses the perpetual inventory method. The inventory records for Chase reflected the following  Assuming Chase uses a FIFO cost flow method, the cost of goods sold for the sales transaction on January 31 is:
A) $1,020. 
B) $1,005. 
C) $1,045. 
D) $340.

Quizplus · Accepted Answer

(200 × $2.10) + (250 × $2.40) = $1,020 cost of goods sold

Chase Co Uses the Perpetual Inventory Method