Vargas Company Uses the Perpetual Inventory System and the FIFO

Multiple Choice

Vargas Company uses the perpetual inventory system and the FIFO cost flow method. During the current year, Vargas purchased 1,300 units of inventory that cost $14 each. At a later dateduring the year, the company purchased an additional 1,700 units of inventory that cost $15 each. Vargas sold 1,400 units of inventory for $18.What is the amount of cost of goods sold that will appear on the current year's income statement?

A) $5,500
B) $18,200
C) $4,200
D) $19,700