Tehran Ltd

Multiple Choice

Tehran Ltd.uses FIFO to cost its inventory.The following information is available for Tehran's inventory of product # 101:
Beginning inventory: 120 units @ $3.14 per unit
March 1: Purchase of 250 units @ $3.50 per unit
April 10: Sale of 100 units @ $5.10 per unit
Assuming Tehran uses the perpetual inventory system, the second entry to account for the April 10 sale is

A) debit Cost of Goods Sold and credit Inventory, $350.
B) debit Cost of Goods Sold and credit Purchases, $350.
C) debit Cost of Goods Sold and credit Inventory, $314.
D) debit Cost of Goods Sold and credit Purchases, $314.