Kenya Co Uses the Perpetual Inventory Method

Multiple Choice

Kenya Co. uses the perpetual inventory method. Kenya purchased 400 units of inventory that cost $6.00 each. At a later date the company purchased an additional 600 units of inventory that cost $8.00 each. If Kenya uses the FIFO cost flow method and sells 700 units of inventory, the amount of cost of goods sold will be:

A) $5,600.
B) $4,800.
C) $4,200.
D) $5,400.