Reference no: EM132604021

Winter Ltd. uses FIFO to cost its inventory. The following information is available for Winter's inventory of product # 101:

Beginning inventory: 120 units @ $3.14 per unit

March 1: Purchase of 250 units @ $3.50 per unit

April 10: Sale of 100 units @ $5.10 per unit

Question 1: Assuming Winter uses the perpetual inventory system, the second entry to account for the April 10 sale is

Option a. debit Cost of Goods Sold and credit Purchases, $314.

Option b. debit Cost of Goods Sold and credit Inventory, $350.

Option c. debit Cost of Goods Sold and credit Inventory, $314.

Option d. debit Cost of Goods Sold and credit Purchases, $350.