Question 22 (1.5 points) Green Pans Inc. began their business at the beginning of October and purchased four units of inventory at the following prices. October 4, $9; October 13, $13; October 21, $12; and October 26, $10. If the company sold three units for $35 each one on October 17 and two other units on October 30, and used the FIFO cost formula in a perpetual inventory system, the gross profit for October would be: A) $73 B) $74 C) $70 D) $71 Question 23 (1.5 points) Which of the following statements regarding accounting for inventories is correct? (choose the most suitable answer if you believe more than one answer is correct) A) Under FIFO, the cost of ending inventory is based on the earliest units purchased. B) None of the answers are correct. C) It is generally good business management to sell the most recently acquired goods first. D) FIFO assumes that the earliest goods acquired are the first to be sold. Question 24 (1.5 points) Company K-Talk has a beginning inventory balance of $50,000. It purchased another $30,000 of inventory during the year. It has an ending balance in its inventory account of $55,500. What is the cost of goods available for sale during the year? A) $80,000 B) $24,500 C) $85,500 D) $35,500 Question 25 (1.5 points) Power Co. purchased inventory as follows: November 2 300 units at $16 November 4 400 units at $20 November 8 200 units at $19 On November 7, Power Co. sold 500 units for $30 each. The average unit cost to be used for the cost of goods sold on November 7, in a perpetual inventory system, is A) $18 B) $20 C) $18.44 D) $18.29