Question

The Farley Corporation starts the year with a beginning inventory of 3,000 units at $5 per unit. The company purchases 5,000 units at $4 each in February and 2,000 units at $6 each in March. Farley sells 1,500 units during this quarter. Farley has a perpetual inventory system and uses the FIFO inventory costing method. What is the cost of goods sold for the quarter?

A) $6,000

B) $9,340

C) $7,500

D) $9,000

Answer

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