Author Question: The sales account is credited for the selling price of merchandise sold during the period. a. True ... (Read 65 times)

daltonest1984 · **on:** Jul 5, 2018

The sales account is credited for the selling price of merchandise sold during the period.
a. True
b. False
Indicate whether the statement is true or false

Question 2

Vango, Inc. sells part number 86Z to auto parts stores around the world. Information about part number 86Z is contained in the table below. Vango uses a LIFO periodic inventory system.

Number of Units Unit Cost Total Cost
Beginning inventory 2,000 8.00 16,000
Purchase 3,000 8.20 24,600
Purchase 5,000 8.60 43,000
Totals 10,000 83,600

Determine the cost of goods sold and ending inventory value of part 86Z, if 4,000 units remain unsold in inventory at the end of the accounting period.
A) Cost of goods sold is 49,200 and ending inventory is 34,400.
B) Cost of goods sold is 34,400 and ending inventory is 49,200.
C) Cost of goods sold is 50,160 and ending inventory is 33,440.
D) Cost of goods sold is 51,200 and ending inventory is 32,400.