The Jeter Company Uses the Perpetual Inventory System and the Average

Multiple Choice

The Jeter Company uses the perpetual inventory system and the average cost formula to value inventories. On August 1, there were 5,000 units valued at $15,000 in the beginning inventory. On August 10, 10,000 units were purchased for $6 per unit. On August 15, 8,000 units were sold for $12 per unit. The amount charged to cost of goods on August 15 was

A) $35,000.
B) $40,000.
C) $48,000.
D) $36,000.