Tehran Ltd $\quad 120$ Units $@ \$ 3.14$ Per Unit
March 1 $\quad$

Multiple Choice

Tehran Ltd. uses FIFO to cost its inventory. The following information is available for Tehran's inventory of product # 101: Beginning inventory: $\quad 120$ units $@ \$ 3.14$ per unit
March 1: $\quad$ $\quad$ $\quad$ $\quad$ Purchase of 250 units @ $\$3.50$ per unit
April 10: $\quad$ $\quad$ $\quad$ $\quad$ 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.