Chase Co. uses the perpetual inventory method. The inventory records for Chase reflected the following:

Jan 1	Beginning inventory	300	units	@	$	2.30
Jan 12	Purchase	400	units	@	$	2.10
Jan 18	Sales	500	units	@	$	3.80
Jan 21	Purchase	300	units	@	$	2.40
Jan 25	Purchase	100	units	@	$	2.20
Jan 31	Sales	450	units	@	$	3.80

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.

Answer rating: 100% (QA)

Ending inventory units300400500300100450150 units ... View the full answer