Beech Soda, Incorporated uses a perpetual inventory system. The company's beginning inventory of a particular product and its purchases during the month of January were as follows: Quantity Unit Cost Total Cost Beginning inventory (January 1) 23 $ 25 $ 575 Purchase (January 11) 26 $ 31 806 Purchase (January 20) 37 $ 33 1,221 Total 86 $ 2,602 On January 14, Beech Soda, Incorporated sold 39 units of this product. The other 47 units remained in inventory at January 31.

Assuming that Beech Soda uses the LIFO cost flow assumption, the cost of goods sold to be recorded at January 14 is:

Multiple Choice

$2,602.

$1,131.

$1,427.

$1,071.