Vincent Company Uses the Perpetual Inventory Method

Multiple Choice

Vincent Company uses the perpetual inventory method. Vincent purchased 400 units of inventory that cost $5.00 each. At a later date the company purchased an additional 800 units of inventory that cost $6.00 each. Vincent sold 500 units of inventory for $9.00. If Vincent uses a FIFO cost flow method, the amount of cost of goods sold appearing on the income statement will be:

A) $1,900.
B) $2,000.
C) $1,500.
D) $2,600.