Reference no: EM132826989

Problem 1: A company purchases 20 units of Product X for $10 each and then 30 units for $12 each. The company then sells 25 units of Product X at a $20 selling price per unit. Assuming the company uses the FIFO cost formula, cost of goods sold is:

Option 1: $200.
Option 2: $250.
Option 3: $260.
Option 4: $300.

Problem 2: Havier's Treasures had cost of goods sold of $600,000, ending inventory of $250,000, and average inventory of $200,000. The inventory turnover rate is

Option 1: 3.00.
Option 2: 2.67.
Option 3: 2.40.
Option 4: 1.00.