Vargas Company Uses the Perpetual Inventory Method

Multiple Choice

Vargas Company uses the perpetual inventory method.Vargas purchased 400 units of inventory that cost $15.00 each.At a later date the company purchased an additional 800 units of inventory that cost $18.00 each.Vargas sold 500 units of inventory for $27.00.If Vargas uses a FIFO cost flow method,the amount of cost of goods sold appearing on the income statement will be:

A) $7,800.
B) $6,000.
C) $4,500.
D) $5,700.